Catenaa, Thursday, June 26, 2025-Eight of South Korea’s largest banks have joined forces to create a won-pegged stablecoin, marking the nation’s first commercial bank-led initiative in digital assets. The consortium includes KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, Citibank Korea and SC First Bank.
Announced Wednesday, the initiative is backed by the Open Blockchain and DID Association and is aligned with guidance from the Financial Supervisory Service.
The joint venture aims to roll out two models for issuing the stablecoin: one trust-based and the other deposit-linked. The former involves issuing coins from segregated customer funds, while the latter ties issuance directly to bank deposits on a 1:1 basis.
The move follows calls from Bank of Korea officials for a gradual, bank-led introduction of won-backed digital currencies. The central bank’s deputy governor Ryoo Sang-dai supported a phased rollout during a press conference Tuesday.
The development comes amid broader global momentum on stablecoin regulation. The U.S. recently passed the GENIUS Act, establishing a federal framework for dollar-based stablecoins. South Korea’s National Assembly is now debating the Digital Asset Act, which outlines a similar authorization regime for stablecoins.
Newly elected President Lee Jae-myung has pledged to launch a KRW stablecoin and expand its use in trade and domestic payments. Although the Bank of Korea has expressed skepticism, the banks’ private-led effort signals rising urgency to counter foreign dominance in digital assets.
