South Korean Banks Collaborate on Won-Backed Stablecoin Launch

• Lyla Velez
• June 26, 2025
• News
• 0 Comments

The collaboration aims to reduce dependency on USD-pegged stablecoins, impacting local and international digital finance dynamics positively.

“Eight major banks in South Korea are working with the Open Blockchain and DID Association and the Financial Settlement Institute to establish a Korean won stablecoin joint venture. This project is the first time that the banking industry has entered the digital asset field in the…” — Wu Blockchain, Industry Analyst, Blockchain Expert, source

The initiative involves South Korea’s major banks, including KB Kookmin Bank and Shinhan Bank, collaborating with Open Blockchain and the Financial Settlement Institute. This marks the traditional banking sector’s first coordinated move towards digitizing assets extensively. The banks’ leaders have been at the forefront of financial innovations and blockchain initiatives in recent years, although they have not publicly commented on this specific venture.

The joint effort is anticipated to influence domestic financial policies by decreasing dependence on USD-based stablecoins, such as USDT and USDC. This strategic diversification aims to bolster South Korea’s financial autonomy in the digital currency landscape. If successful, other countries might follow suit, altering global stablecoin dynamics.

Potential ramifications include shifts in local liquidity for major cryptocurrencies. Real Coin Central updates suggest that this move could result in increased settlement efficiency and instigate changes across decentralized finance protocols. Analysts suggest that the project could pressure current stablecoin issuers to adjust their approaches in Asian markets, especially if Korean exchanges begin pairing assets directly with the digital won.

The global banking and cryptocurrency landscapes may see significant changes as this project unfolds. Future tendencies include enhanced financial compliance and advanced technological integration, with South Korea possibly serving as a model for similar blockchain-based currency initiatives in other regions.