25-6-2025 – Eight prominent South Korean banks are forging a pioneering alliance to launch a stablecoin tethered to the Korean won. This ambitious venture unites KB Kookmin Bank, Shinhan Bank, Woori Bank, NongHyup Bank, Korea Development Bank, Suhyup Bank, Citibank Korea, and Standard Chartered Bank Korea in a collaborative effort to reshape the nation’s financial landscape.
The initiative, crafted in partnership with the Open Blockchain and Decentralized Identifier Association and the Korea Financial Telecommunications and Clearings Institute, is poised to harness cutting-edge blockchain technology. The consortium is meticulously exploring the technical framework required to bring this vision to fruition, with deliberations centring on a robust shared infrastructure.
Two distinct approaches are under consideration for the stablecoin’s issuance. One is a trust-based model, ensuring that each stablecoin is backed by individually secured customer funds. The alternative is a deposit token model, anchoring the stablecoin’s value to bank deposits for enhanced stability.
Pending regulatory approval, this groundbreaking joint venture could commence operations as early as late this year or in the opening months of next. If successful, this endeavour could mark a transformative milestone in South Korea’s journey towards a digitally empowered economy, blending traditional banking prowess with innovative financial solutions.
