South Korean Banks Plan Won-Pegged Stablecoin by 2026
Eight major South Korean banks, including KB Kookmin and Shinhan, will collaborate to launch a stablecoin pegged to the Korean won, aiming to enhance digital asset adoption and counteract the dominance of dollar-pegged stablecoins. The project is set to launch in late 2025 or early 2026 and represents a significant move by traditional banks into the digital asset space. The stablecoin will utilize a trust-based model or a 1:1 deposit token scheme, pending regulatory approval. This initiative aligns with South Korea's legislative efforts to establish a clear regulatory framework for digital assets, including the proposed Digital Asset Basic Act. Concerns have been raised by Bank of Korea officials regarding potential currency exchange issues that could arise from the stablecoin's introduction, emphasizing a cautious approach to its rollout.
