South Korean Banks Plan Won-Backed Stablecoin Initiative

A consortium of eight prominent South Korean banks, including KB Kookmin, Shinhan, Woori, NongHyup, Industrial Bank of Korea, Suhyup, Citibank Korea, and Standard Chartered Korea, is reportedly planning to launch a won-backed stablecoin. The initiative aims to provide a domestic alternative to existing dollar-denominated stablecoins like USDT and USDC, with a target launch as early as late 2025 or early 2026.

This effort is being pursued in conjunction with ongoing legislative pushes by South Korean lawmakers to regulate the digital asset market. The broader goal is to reduce reliance on foreign digital currencies and reinforce financial sovereignty amidst a volatile geopolitical landscape.

The consortium is evaluating two potential models for the stablecoin: a trust-based framework where user funds are held in custody, and a deposit-linked structure where stablecoins are issued directly against bank deposits. These banks are collaborating on the initiative with the Open Blockchain and Decentralized Identifier Association (OBDIA), a local blockchain advocacy body, and the Korea Financial Telecommunications and Clearings Institute (KFTC), a non-profit organization that operates the country's interbank payment and settlement system.