Eight major banks in South Korea, including KB Kookmin and Shinhan, are collaborating to launch a stablecoin pegged to the Korean won by late 2025 or early 2026. This initiative seeks to counteract the dominance of US dollar-pegged stablecoins, which make up 99% of the over $239 billion stablecoin market. Supported by organizations like the Open Blockchain and Korea Financial Telecommunications and Clearings Institute, the stablecoin will operate on a trust-based model, pending regulatory approval. This effort is part of a broader legislative agenda to facilitate digital asset growth in South Korea, as indicated by the proposed Digital Asset Basic Act. Despite concerns from Bank of Korea officials regarding potential issues in currency management, there is no opposition to the initiative as it presents an opportunity for South Korea to enhance its position in the global digital finance landscape.

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