Leading stablecoin issuers Tether and Circle are scheduled to meet with top executives from South Korea's largest banks to discuss digital currency issues and stablecoin issuance potential.
Stablecoin Discussions
According to state-backed Yonhap News Agency, discussions will cover the potential issuance of Korean won-backed stablecoins and the distribution of dollar-backed tokens in South Korea, an emerging crypto market. Meetings are planned with executives from Shinhan, Hana, KB Financial, and Woori banks. Shinhan and Hana's CEOs are set to meet Circle President Heath Tarbert on Friday.
Global Initiatives by Tether and Circle
Tether and Circle have been strengthening their international outreach as governments move towards clearer regulations for digital currencies. Both executives attended a U.S. Commodity Futures Trading Commission forum in March. Tether is expanding internationally, securing agreements with governments in Guinea and Uzbekistan, while Circle seeks institutional partnerships amid the rollout of the GENIUS Act, the U.S.'s first federal stablecoin law.
Suspension of Central Bank Digital Currency Trials
Earlier in June, the Bank of Korea suspended its pilot program for a central bank digital currency (CBDC), shifting focus to private sector-backed stablecoins linked to the Korean won. This decision followed assessments of costs and a lack of a clear commercialization strategy from the central bank, causing concerns among participating banks such as KB Kookmin and Shinhan.
The meetings between Tether and Circle with South Korea's largest banks highlight the significance of regulatory frameworks and the evolution of private sector stablecoins amid the suspension of central bank digital currency trials.
