Korean Won Stablecoin Market Poised for Takeoff: Who Will Lead the Competition?

After the new government took office in South Korea, the cryptocurrency industry became rapidly active. Not only are several major commercial banks preparing a joint project for a Korean won stablecoin, but traditional tech giants and Web3 companies are also making moves, hoping to seize the initiative in the increasingly fierce regional and even global stablecoin competition.

At the same time, Congress is reviewing the "Basic Law on Digital Assets" to provide a legal basis for private institutions to issue Korean won stablecoins, and financial regulatory authorities are also accelerating the establishment of operational norms in line with international standards. It is expected that the second half of 2025 to the first half of 2026 could be a key period for rapid growth in the Korean stablecoin market.

Bank Alliance Becomes the Most Competitive Participant

The Bank of Korea takes a cautious attitude towards stablecoins, believing that they should be issued first by commercial banks that are subject to strict regulation. Under this policy guidance, eight major banks plan to prepare to establish a joint venture to issue a Korean won stablecoin, with participating banks including Kookmin Bank, Shinhan Bank, Woori Bank, and NongHyup Bank.

The project team is considering two stablecoin issuance models: trust model and deposit token model. Banks are discussing the joint construction of infrastructure, and a joint venture is expected to be established as early as the end of this year or the beginning of next year.

Among them, National Bank has shown the most active performance and has initiated the process of acquiring trademarks related to stablecoin. Shinhan Bank, on the other hand, had already collaborated with Hedera on a pilot project for Korean won stablecoin in 2021 and participated in the demonstration experiment for Korea-Japan overseas remittances based on stablecoin in April this year.

Tech giants Kakao Pay and Kaia actively layout

Kakao Pay, as a leading company in the payment sector in South Korea, has shown a proactive approach in the layout of the Korean won stablecoin. The company has submitted 18 trademark applications related to stablecoins to the Korean Intellectual Property Office, covering the fields of virtual asset financial transactions, electronic transfers, and intermediary services.

Kakao Pay will actively cooperate with the legislative process of the "Basic Law on Digital Assets" and strive to become one of the first compliant stablecoin issuers. With its advantages in social, payment, and financial services, Kakao Pay is expected to provide a large number of application scenarios for stablecoins.

At the same time, the EVM-compatible Layer 1 public chain Kaia, formed by the merger of Klaytn and Finschia, also plans to promote the issuance of Korean won stablecoin on its mainnet. Kaia collaborates with super applications such as Kakao Pay and LINE NEXT to achieve integrated cross-chain and cross-platform circulation of "on-chain + social + payment."

Other Potential Participants

The veteran payment service provider Danal has restarted its digital currency business and has submitted several patent applications related to POS terminals that support virtual asset payments to the Korean Patent Office. With years of accumulated POS terminal network and payment clearing system, Danal has a natural advantage in the stablecoin business process.

The blockchain startup Nexus has issued a Korean won stablecoin named KRWx on the BNB Chain and has submitted a related trademark registration application. Nexus also plans to establish a subsidiary in Hong Kong to promote the internationalization of the stablecoin.

Samsung SDS's Nexledger and LG CNS's wholesale CBDC/tokenized deposit systems are also seen as potential participants and beneficiaries. These two companies have rich experience in enterprise-level blockchain solutions and digital currency management, and may occupy an important position in the stablecoin infrastructure field through technology output.

With the gradual opening of the stablecoin market in South Korea, various participants are actively positioning themselves, and it is worth keeping an eye on who will stand out in this competition in the future.