Upbit and Naver Pay announced a strategic partnership to issue a KRW stablecoin that meets market demands.
Strategic Partnership
The partnership between Upbit and Naver Pay aims to address the issue of the 'kimchi premium' and simplify the domestic crypto market. It is expected that this cooperation will help enhance cryptocurrency liquidity.
Technology and Infrastructure Development
Dunamu and Naver Pay are actively participating in the launch of a new KRW stablecoin in response to market demands. According to Upbit, they will act as a technology and infrastructure collaboration partner, enhancing crypto liquidity. This effort aligns with recent legislative proposals for stablecoin issuance in Korea.
Financial Implications
The initiative for the stablecoin could increase the volume of KRW-based transactions and facilitate international money transfers. South Korean banks and fintech entities have shown interest in stablecoin products, as evidenced by trademark applications.
If successful, this project may set a precedent for private sector stablecoin developments in Korea, changing the dynamics of the cryptocurrency market in the country.
