South Korea's largest banks have formed a consortium to issue a Won-backed stablecoin.
The banks - KB Kookmin, Shinhan, Woori, NongHyup, Industrial Bank of Korea, Suhyup, and Standard Chartered Korea - intend to launch the stablecoin as early as late 2025 or early 2026 with the aim of providing an alternative to existing dollar-denominated stablecoins like USDT and USDC.
South Korean lawmakers and politicians are currently pushing through legislation to regulate the digital asset market in Korea as part of an effort to reduce reliance on foreign digital currencies and reinforce financial sovereignty in a volatile geo-political climate.
The consortium is studying two potential models: a trust-based framework where user funds are held in custody, and a deposit-linked structure where stablecoins are issued directly against bank deposits.
The banks are coordinating the initiative in collaboration 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 that operates the country's interbank payment and settlement system.