Eight commercial banks in South Korea have united to create a new won-backed stablecoin.

Their announcement, made on June 25, 2025, represents the first effort by South Korean commercial banks to join forces in the digital asset arena. In collaboration with the Open Blockchain and Decentralised Identifier Association (OBDIA) and the Korea Financial Telecommunications and Clearings Institute (KFTC), this initiative aims to innovate the financial landscape in the region.

The banks involved include Citi Korea, KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, and Standard Chartered Korea, following an endorsement from the South Korean central bank about a gradual rollout plan for the won-backed stablecoin.

In preparation, KB Kookmin has filed 17 trademark applications for the stablecoin, proposing ticker designs like KBKRW and KRWST.

KB Kookmin Bank files trademarks for KRW stablecoin — a significant advancement for Korea’s digital asset future. South Korea’s top bank recently registered multiple trademarks associated with a prospective won-pegged stablecoin, paving the way for innovations in digital finance.

During a press conference, the Bank of Korea’s Senior Deputy Governor stated, “It is advisable to initially permit banks—subject to rigorous regulations—to issue won-based stablecoins before eventually extending this to the non-bank sector.”

Historically, the regulations surrounding foreign exchange in South Korea have posed challenges to the creation of tokens tied to the won, resulting in the downfall of several initiatives like Binance’s “BKRW.”

Two Stablecoin Models Finalised

Pertaining to South Korea’s stablecoin legislative initiatives, experts forecast a launch timeframe for the consortium around late 2025 or early 2026.

Local reports suggest that the banks are discussing shared infrastructure and have introduced two primary methods for issuing the won-backed stablecoin:

1. A trust-based model for issuing tokens against separately held customer funds.
2. A deposit-linked model that directly connects token creation to bank deposits at a 1:1 ratio.

One banking official remarked, “There is a common urgency that if current trends continue, foreign dollar coins may overwhelm our domestic market. It is crucial to bolster the independence and competitiveness of our financial system with a won-based digital currency.”

Won-Backed Stablecoin Has Political Backing

The commitment from Lee Jae-myung, the newly elected President of South Korea, to promote KRW stablecoins was articulated ahead of the elections. He indicated that a digital won could mitigate wealth outflow towards dollar-pegged stablecoins.

Post-elections, the Democratic Party of Korea introduced the Digital Basic Act on June 10, 2025, aiming to expedite the establishment of a regulatory framework for stablecoins within the country.

Sources indicate that the South Korean financial sector is waiting to see if won-backed stablecoins can adequately balance the national digital currency ecosystem against robust competition from Central Bank Digital Currencies (CBDCs), privately issued coins, and dollar-pegged alternatives.

Key Takeaways

• A consortium of eight South Korean banks is set to launch a won-backed stablecoin.
• The issuance is projected for late 2025 or early 2026.
• A trust-based and deposit-based model has been developed for the stablecoin’s issuance.