South Korean Banks Rush to Dominate the Stablecoin Market
Top banks and tech companies in South Korea are rapidly collaborating to facilitate the issuance of stablecoins. Major tech companies like Naver, Kakao, and Samsung Electronics are partnering with financial holding corporations, including , Shinhan Financial Group, Hana Financial Group, and Woori Financial Group.
The goal of these partnerships is to establish the necessary infrastructure to facilitate the issuance and management of transactions for stablecoins pegged to the Korean won.
The amount of domestic stablecoin transactions has already surpassed $41 billion, indicating that more people are using them and banks are becoming increasingly interested in them. The government hasn’t officially recognized stablecoins as a means of payment yet, but major banks are preparing to be the primary issuers of these tokens once the rules are more straightforward.
Tech Giants to Build significant Infrastructure
Industry leaders emphasize that banks must collaborate with tech companies. Traditional banks may struggle to develop their own technological platforms for stablecoin projects, whereas IT companies already possess strong ecosystem infrastructure and a broad digital reach. Once stablecoins are available, this connection should accelerate their use in real-world applications and adoption.
For example, KB, Shinhan, and Hana have teamed up with the internet company Naver to explore launching new products and working more closely with Dunamu, the company that operates Korea’s largest cryptocurrency platform, Upbit.
At the identical time, Woori Financial Group has strengthened its long-standing cooperation with Samsung Electronics, especially through the Samsung Wallet platform, which is already able to handle and issue digital assets. Most partnerships with companies are still mostly technical. Most stablecoin issuance will probably be handled by large banks, either on their own or through bank consortia.
Changes in Rules Arise
South Korean financial regulators are preparing to introduce the country’s first full stablecoin bill to the National Assembly. The proposed law, known as “phase 2 of cryptocurrency law,” is due to be submitted by the end of the year. It will give authorized institutions a defined set of rules for issuing, launching, and managing won-pegged stablecoins.
The has made a significant announcement: the new laws will prevent stablecoin holders from earning interest or yield on their tokens. This is part of a recent trend in other places, such as the U.S. GENIUS Act, which shows a coordinated effort to reduce risk and prioritize consumer securety in the rapidly growing digital asset market.
Effects on The Market and What The Future Holds
Woori Financial Group’s investment in BDACS, a top digital asset custody company, shows how quick the industry is growing. has just launched the KRW1 stablecoin later than collaborating with Woori Bank to demonstrate the feasibility of the concept.
As both regulatory advancements and technical partnerships move forward, South Korean banks are in a excellent position to build the country’s stablecoin ecosystem and assist it grow in the future.
As the groundwork is being laid for stablecoin regulation and infrastructure, the competition among South Korean financial institutions to take the lead in this area highlights the urgency and significance of the opportunities in the evolving digital currency market.
