The Biggest Banks in South Korea Team Up to Create a New Crypto

• A consortium of South Korea’s eight largest banks plans to issue a won-pegged stablecoin
• The move is aimed at reducing reliance on foreign, dollar-backed stablecoins in the market
• The initiative is supported by the country’s new president and fast-track legislation

South Korea’s financial sector is making a strategic move to issue a won-pegged stablecoin, with the country’s largest commercial banks leading a joint plan. 

The initiative comes as regulators begin outlining new rules for stablecoins and crypto ETFs, part of a broader national effort to strengthen the domestic market and assert financial sovereignty in the digital age.

Why Are South Korea’s Top Banks Taking This Step?

Eight of South Korea’s top banks—KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, Citibank Korea, and SC First Bank—have formed a consortium with the Open Blockchain and DID Association and the Financial Settlement Institute. 

According to a June 25 report from Economic Review, the team is centered on developing a stablecoin backed by the Korean won to support domestic financial sovereignty.

Related: South Korea Explores Won Stablecoin as…

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