South Korean Banks to Launch Won-Pegged Stablecoin by 2026
Eight major South Korean banks, including KB Kookmin and Shinhan, plan to introduce a won-pegged stablecoin by late 2025 or early 2026. This move aims to reduce reliance on US dollar-pegged stablecoins and strengthen South Korea’s role in the digital finance market.
Addressing Market Imbalance
Currently, dollar-pegged stablecoins dominate 99% of the market. The new initiative offers several advantages:
- Supports the Korean won as a digital asset
- Enhances South Korea’s competitive position
- Aligns with the proposed Digital Asset Basic Act
Regulatory Landscape
The project has gained support from Open Blockchain and the Decentralized Identity Association. Bank of Korea Governor Rhee Chang-yong cautioned about potential currency management challenges, while Deputy Governor Ryoo Sangdai emphasized the need for careful implementation.
Broader Implications
This development could influence other nations considering similar digital finance solutions. By combining traditional banking credibility with cryptocurrency innovation, South Korea positions itself as a leader in the evolving crypto space.
