South Korean Won Stablecoin Market Accelerates Development: Multiple Forces Compete for Future Leading Position

After taking office, South Korean President Lee Jae-myung has brought new development opportunities to the South Korean cryptocurrency industry. Longer forces are actively laying out the Korean won stablecoin market, striving to gain an advantage in the regional and even global stablecoin competition.

Currently, Congress is reviewing relevant laws to provide a legal basis for private institutions to issue Korean won stablecoins, and regulatory authorities are also accelerating the establishment of regulations. It is expected that the second half of 2025 to the first half of 2026 may become a critical period for the rapid growth of the Korean stablecoin market.

Bank alliances may become the most competitive participants

The Bank of Korea holds a cautious attitude towards stablecoins, believing that they should first be issued by commercially regulated banks. According to reports, eight major banks plan to establish a joint venture to issue a Korean won stablecoin, including Kookmin Bank and Shinhan Bank. The project team is considering two issuance methods: a trust model and a deposit token model, with the joint venture possibly being established by the end of this year or early next year.

KB Kookmin Bank, as the largest retail bank in South Korea, has taken the lead in applying for relevant trademark rights. Shinhan Bank had already partnered with Hedera in 2021 to conduct a stablecoin pilot. Woori Bank, NongHyup Bank, and others also have extensive experience in CBDC testing and blockchain projects.

Tech Giants Actively Positioning

Kakao Pay, as a leading enterprise in the payment field, has launched its business layout for the Korean won stablecoin. The company has submitted 18 relevant trademark applications to the Korea Intellectual Property Office, covering areas such as virtual asset trading and electronic transfers. Kakao Pay is expected to leverage its traditional business advantages and collaborate with its parent company's ecosystem to provide a wide range of application scenarios for the stablecoin.

Kaia is a public chain formed by the merger of Klaytn and Finschia, planning to promote the Korean won stablecoin on its mainnet. Kaia has partnered with Tether to introduce USDT, laying the foundation for the subsequent issuance of the Korean won stablecoin.

Established payment service providers are making a strong push again

Payment service provider Danal launched PayCoin in 2019 for early exploration. Recently, Danal has submitted multiple patent applications for POS terminals supporting virtual asset payments to the Korean Patent Office, preparing for future stablecoin payment scenarios. With years of accumulated POS networks and clearing systems, Danal holds an advantage in the stablecoin business process.

Blockchain Startups Compete to Establish Layouts

The blockchain company Nexus has issued a Korean won stablecoin named KRWx on the BNB Chain and has applied for related trademarks. Nexus also plans to launch fiat stablecoins such as the US dollar, Japanese yen, and euro, and intends to establish a subsidiary in Hong Kong to advance its international expansion.

Other Potential Participants

Samsung SDS's Nexledger and LG CNS's CBDC solutions are also seen as potential participants. These IT giants, with their mature enterprise-level blockchain technology, are expected to play an important role in the infrastructure development of the KRW stablecoin.

As relevant regulations gradually improve, competition in the South Korean stablecoin market will become increasingly fierce. Various participants are actively positioning themselves to seize opportunities in this emerging market. The future development of the Korean won stablecoin is worth continuous attention.