Eight major South Korean banks are collaborating to introduce a stablecoin pegged to the Korean won by 2026, marking a strategic move to bolster the national currency's position in the global digital finance landscape.

Banking Consortium Targets Dollar Dominance

The initiative involves financial heavyweights including KB Kookmin, Shinhan, and Woori banks, among others. This coalition aims to challenge the overwhelming prevalence of dollar-pegged stablecoins, which currently represent 【99%】 of the $239 billion stablecoin market according to RWA.xyz data. The project represents traditional banking's most significant foray into digital assets to date.

Implementation Timeline and Regulatory Framework

Scheduled for late 2025 or early 2026 launch, the stablecoin will adopt either a trust-based model or 1:1 deposit token structure pending regulatory approval. The initiative aligns with South Korea's proposed Digital Asset Basic Act, introduced in June 2025 to establish clear guidelines for digital asset issuance and trading.

——This legislative push creates a crucial foundation for institutional crypto adoption in Asia's fourth-largest economy——

Central Bank Expresses Cautious Stance

Bank of Korea Governor Rhee Chang-yong voiced concerns about potential currency volatility, noting the stablecoin could facilitate easier won-to-dollar conversions. However, the central bank maintains a non-oppositional position, with Deputy Governor Ryoo Sangdai advocating for gradual implementation through banking institutions first.

Industry Support and Technical Backing

The project has garnered support from blockchain organizations including Open Blockchain and the Decentralized Identity Association. Technical infrastructure will be provided by the Korea Financial Telecommunications and Clearings Institute, ensuring integration with existing financial systems.

As global stablecoin adoption accelerates, South Korea's move positions it among pioneering nations developing sovereign digital currency alternatives. The won-pegged stablecoin could reshape regional payment systems and cross-border transactions in Northeast Asia's dynamic financial markets.