South Korean Banks Plan Won-Pegged Stablecoin Initiative
- South Korean banks plan a won-pegged stablecoin by 2026.
- Joint venture involves top eight banks.
- Could shift liquidity to domestic markets.
South Korea’s top eight banks plan to issue a won-pegged stablecoin by 2026, aiming to navigate regulatory reforms and enhance their digital asset involvement.
This initiative marks a significant step in South Korea’s focus on digital finance, potentially reducing reliance on foreign stablecoins and reshaping the local cryptocurrency market.
South Korea’s eight largest banks are developing a won-pegged stablecoin, expected to be ready by 2026, amid regulatory changes in the country’s digital asset market.
The stablecoin aims to strengthen local market liquidity, reducing dependence on foreign digital currencies like USDT or USDC.
Won-Pegged Stablecoin Backed by Leading Banks
South Korea’s eight major banks are planning a joint venture to launch a won-pegged stablecoin by 2026. This involves collaboration with South Korea’s Financial Supervisory Service. The banks aim to broaden their role in digital assets, supported by regulatory reforms. This includes the Bank of Korea’s new Virtual Asset Team.
“Our Virtual Asset Team will also be responsible for responding to discussions related to stablecoins and virtual assets, and cooperative work with the government during the legislative process.” — Bank of Korea Official, Bank of Korea
Reducing Reliance: Foreign Stablecoin Alternatives
The initiative might reduce reliance on foreign stablecoins in South Korean markets. This could influence the liquidity flows and usage of crypto assets like BTC and ETH. By issuing a domestic stablecoin, the joint venture is anticipated to enhance the local crypto ecosystem and fortify its position internationally.
No Precedent: A First for South Korean Banks
No exact precedent exists for such a bank-led stablecoin in South Korea. Previous CBDC initiatives from the Bank of Korea illustrate increasing institutional engagement. Anticipated outcomes suggest potential shifts in market dominance from foreign to local coins, aligning with similar global trends toward national market resilience.
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