Hana Bank participates in a stablecoin consortium led by Korean banks, with the Bank of Korea expressing support for financial institutions to lead the way.
In a significant move towards digital finance, eight major Korean banks have joined forces to launch a stablecoin pegged to the Korean won. The consortium, which includes KB Kookmin, Shinhan, Woori, NH Nonghyup, IBK Industrial, SH Suhyup, Citibank Korea, and SC First Bank (Standard Chartered Korea's Korean division), aims to counter the dominance of US dollar-pegged stablecoins in the market and establish a strong presence for South Korea in the digital asset space.
The project, expected to be rolled out by late 2025 or early 2026, seeks to issue a stablecoin that will be developed under a consortium model, marking the first major entry by traditional financial institutions into South Korea's digital asset space. The initiative is supported by Korea's blockchain-focused nonprofit Open Blockchain, the Decentralized Identity Association, and the Korea Financial Telecommunications and Clearings Institute, highlighting a broad ecosystem collaboration.
The stablecoin will likely adopt either a trust-based model or a 1:1 deposit token scheme, both of which are under regulatory and legal review. The central bank is considering experimenting with permissionless blockchains in response to the stablecoin push, indicating a willingness to adapt to the evolving digital landscape.
The move aligns with South Korea’s legislative push to create a clearer regulatory framework for digital assets, notably the proposed Digital Asset Basic Act, which aims to facilitate stablecoin issuance and support crypto market growth. The government is also planning to permit small startups to launch stablecoins, further expanding the digital asset landscape in the country.
While Hana Bank and KB Kookmin have already filed stablecoin trademark registrations and expressed interest in joining the consortium, the current publicly disclosed members do not explicitly include iM Bank and K Bank. However, the consortium could potentially expand in the future as the initiative develops.
The Bank of Korea (BOK) Deputy Governor Yoo Sang-dae stated that the timing of the second round of Hangang trials, a tokenized deposit initiative using a wholesale CBDC (wCBDC) for interbank settlement, would be discussed with banks. Despite speculation suggesting a delay until stablecoin legislation is finalized, Deputy Governor Yoo Sang-dae clarified that the discussions would take place without delay.
However, the central bank isn't keen on stablecoins based on the won, as people would likely prefer dollar-based ones due to the dollar's role as a safe-haven asset. The central bank prefers to see banks as the first movers in stablecoin issuance, with a high level of financial regulation to ensure stability and security.
This collaborative effort by Korea's top banks could become a foundational step in the country's digital finance evolution, aiming at global competitiveness and reduced dependence on foreign currency-backed stablecoins. The initiative underscores the growing interest in digital assets and blockchain technology among traditional financial institutions in South Korea.
- The eight major Korean banks, including KB Kookmin, Shinhan, Woori, NH Nonghyup, IBK Industrial, SH Suhyup, Citibank Korea, and SC First Bank, are joining forces to launch a stablecoin, marking the first major entry by traditional financial institutions into South Korea's digital asset space.
- The stablecoin, pegged to the Korean won and expected to be rolled out by late 2025 or early 2026, will be developed under a consortium model, with various supportive organizations such as Open Blockchain, the Decentralized Identity Association, and the Korea Financial Telecommunications and Clearings Institute.
- The stablecoin will likely adopt a trust-based model or a 1:1 deposit token scheme, with both models under regulatory and legal review.
- The central bank is considering experimenting with permissionless blockchains in response to the stablecoin push, indicating a willingness to adapt to the evolving digital landscape.
- South Korea's legislative push to create a clearer regulatory framework for digital assets includes the proposed Digital Asset Basic Act, which aims to facilitate stablecoin issuance and support crypto market growth.
- The Bank of Korea (BOK) is planning discussions with banks regarding the timing of the second round of Hangang trials, a tokenized deposit initiative using a wholesale CBDC for interbank settlement.
- The central bank prefers to see banks as the first movers in stablecoin issuance, with a high level of financial regulation to ensure stability and security, as it isn't keen on stablecoins based on the Korean won.
