South Korea’s Banking Consortium to Launch Won-Pegged Stablecoin

South Korea's largest financial institutions are forming a consortium to issue a Korean won-backed stablecoin, marking the first collective foray into digital assets by the country's banking sector. The alliance includes Kookmin Bank, Shinhan Bank, and six other major players, collaborating with blockchain and financial infrastructure organizations.

The initiative directly challenges the dominance of US dollar-pegged stablecoins in cryptocurrency markets. Two issuance models—trust-based and deposit-token—are under technical and legal review, with a target launch window of late 2024 or early 2025.

"Foreign stablecoins threaten to monopolize our financial ecosystem," a banking executive noted. "A sovereign digital currency strengthens both our independence and competitiveness." The MOVE aligns with broader governmental priorities under the new administration.