Wemade, a gaming company engaged in blockchain, is spearheading the creation of a stablecoin ecosystem anchored in the Korean won. This initiative is part of their newly established Global Alliance for KRW Stablecoins (GAKS), which includes key players such as Chainalysis, CertiK, and SentBe.

Wemade has announced that GAKS will facilitate StableNet, a dedicated mainnet for Korean won-backed stablecoins that adheres to institutional and regulatory standards. Within this collaboration, Chainalysis will provide threat detection and real-time monitoring, while CertiK will oversee node validations and security audits. SentBe will leverage its licensed remittance infrastructure that spans 174 nations allowing the KRW stablecoin venture to function within South Korea’s regulated digital landscape.

This initiative represents Wemade’s commitment to reestablishing itself following a series of challenges over the years, including token delistings and a significant bridge hack that impacted investor confidence.

Wemade’s Challenges and Stablecoin Strategy

Wemade’s journey into the stablecoin sector is the culmination of a tumultuous seven years of transformation from a conventional gaming company to one of South Korea’s prominent blockchain enterprises. The company initiated its blockchain operations in 2018, expanding from a four-person team to a workforce of 200. Yet, this growth faced hurdles due to changing regulations, restricting Wemade’s play-to-earn (P2E) initiatives to international operations.

The company encountered major difficulties with its WEMIX token, which suffered a major setback in 2022 when South Korean exchanges delisted it due to discrepancies with its reported and actual availability, plummeting its market value by over 70%. Further troubles arose in 2024 when a bridge exploitation led to losses of approximately 9 billion won (just over $6 million). Delayed disclosures drew scrutiny and eroded investor trust, prompting a second wave of token delistings.

The stablecoin initiative represents another attempt by Wemade to reshape perceptions about the company and steer its technologies toward safer and compliant applications. According to a report by The Korea Times, the firm is developing a KRW-focused stablecoin mainnet while positioning itself as a technical partner and consortium builder for other South Korean enterprises.

Regulatory Environment in South Korea Post-Terra

The fallout from the Terra collapse in 2022 continues to significantly influence South Korea’s digital asset framework, causing regulators and lawmakers to adopt a stringent approach regarding the associated risks of stablecoin operations. The Financial Services Commission (FSC) and the Bank of Korea (BOK) have been proactive since 2022 in advocating for more stringent liquidity requirements and oversight regulations as they prepare to introduce a stablecoin framework emphasizing risk containment.

The BOK has recommended that banks play a leading role in stablecoin issuance to help mitigate potential risks to financial and currency stability, cautioning against allowing non-banking entities to assume primary issuance roles that could jeopardize existing regulatory frameworks.