Emre Yumlu 
South Korea’s financial institutions are rapidly embracing digital assets, and now the country’s top banks are stepping into the stablecoin arena. A consortium of eight major banks is working together to develop a won-pegged stablecoin, aiming to strengthen the national currency’s position in the digital economy and reduce over-reliance on the US dollar.
A Homegrown Stablecoin Backed by the Won
The initiative includes some of South Korea’s leading financial players — KB Kookmin, Shinhan, Woori, Nonghyup, Corporate, Suhyup, Citi Korea, and SC First Bank. This coalition plans to launch a native stablecoin that can serve as a local alternative to the rapidly expanding market of USD-backed stablecoins.
According to RWA.xyz data, the stablecoin market cap has exceeded $239 billion, with a staggering 99% of that value tied to the US dollar. This imbalance has raised concerns about the global dominance of the dollar in the digital finance ecosystem.
Target Launch: Late 2025 or Early 2026
The project is expected to go live by late 2025 or early 2026. This marks one of the first serious moves by South Korea’s traditional banking sector into digital assets, signaling a shift in the country’s approach to blockchain and financial innovation.
The initiative is also receiving backing from blockchain-focused organizations such as Open Blockchain and the Decentralized Identity Association, along with operational support from the Korea Financial Telecommunications and Clearings Institute.
The stablecoin is expected to follow a 1:1 reserve model, where each digital won issued will be fully backed by a physical won deposit held in reserve. However, final implementation remains subject to regulatory approval.
Regulatory Progress and Policy Framework
This project aligns with South Korea’s ongoing efforts to build a clearer and more inclusive legal framework for digital finance. On June 10, lawmakers introduced the Digital Asset Basic Act, a legislative proposal that would allow stablecoin issuance and foster further growth in the crypto sector.
Central Bank Urges Caution
While the plan has garnered positive attention, South Korea’s central bank has also expressed some reservations. Bank of Korea Governor Rhee Chang-yong noted that a won-based stablecoin could make it easier for users to exchange their holdings into dollars, potentially complicating monetary policy control.
Nevertheless, the central bank clarified that it is not opposed to issuing a won-backed stablecoin, but prefers a cautious, phased rollout. Deputy Governor Ryoo Sangdai emphasized that banks should lead the first wave of issuance to ensure stability and compliance.
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