Major Banks Unite for a Digital Won
South Korea’s top banks have teamed up to launch a won-backed stablecoin. The group includes KB Kookmin, Shinhan, Woori, NongHyup, IBK, Suhyup, Citibank Korea, and Standard Chartered Korea. Their goal is to launch the new digital currency by late 2025 or early 2026.
Challenging US Dollar Stablecoins
This move is a direct response to the global dominance of USDT and USDC. Korean leaders want to reduce reliance on foreign digital currencies. As a result, lawmakers are working quickly to pass legislation regulating digital assets. This shift also supports South Korea’s broader aim for financial sovereignty in uncertain times.
Two Stablecoin Models Under Review
The consortium is weighing two models for the won-backed stablecoin. One option is a trust-based system, where user funds are held in custody. The second is a deposit-linked structure, which would issue tokens directly against bank deposits. Both approaches offer unique advantages in transparency and security.
Strong Local Support
This initiative is supported by the Open Blockchain and Decentralized Identifier Association (OBDIA) and the Korea Financial Telecommunications and Clearings Institute (KFTC). These partners will help integrate the stablecoin into the national payment system, making real-time transfers more efficient.
A Vision for Sovereignty and Innovation
With this new digital currency, Korea aims to lead in blockchain innovation. The won-backed stablecoin could enable faster domestic payments and seamless cross-border transfers. By working together, banks and regulators hope to create a secure, compliant, and sovereign alternative to foreign stablecoins.