S. Korean Banks Eye Won Stablecoin with Tether, Circle Partnerships

South Korean Banks Explore Won Stablecoins

South Korea's leading financial groups are reportedly engaging with Tether and Circle Internet Financial, the companies behind the two largest stablecoins, to discuss potential collaborations. These discussions center on the distribution and transaction of stablecoins pegged to the US dollar within South Korea, as well as the feasibility of issuing a stablecoin linked to the Korean won.

According to Yonhap, executives from Shinhan, Hana, KB Financial, and Woori Bank are scheduled to meet with representatives from both Tether and Circle this week. These meetings underscore the growing interest in stablecoins within the South Korean financial sector.

Key Discussion Points:

• Partnerships for distributing dollar-pegged stablecoins
• Exploring the issuance of a won-backed stablecoin

This initiative aligns with the pro-crypto stance of President Lee Jae Myung's administration, which aims to foster a robust stablecoin market. The development follows the Bank of Korea's decision to shelve its central bank digital currency (CBDC) project in June. Notably, Upbit, a major South Korean crypto exchange, is already collaborating with Naver Pay on a separate won stablecoin project.

Specifically, Shinhan CEO Jin Ok-dong and Hana CEO Ham Young-joo are reportedly scheduled to meet with Circle President Heath Tarbert. Ham Young-joo is also expected to meet with Tether representatives. KB Financial’s chief digital officer, Lee Chang-kwon, and Woori Bank President Jeong Jin-wan, are also reportedly planning talks with Circle.

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