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Eight largest commercial banks of South Korea have joined the forces To start a Korean-renowned Stablecoin and created the first united financial consortium in a country devoted to this purpose.
The aim of the initiative, quietly coordinated by the Open Blockchain & Did Association and under the supervision of the financial supervisory service (FSS), is to pilot the release by the beginning of 2026
The participating banks, KB Kookmin, Shinhan, Woori, NH Nongyup, Industrial Bank Korea, Suhyup, Citibank Korea and Standard Chartered First Bank, represent a large percentage of national retail deposits.
Their unprecedented cooperation is followed by an increase in the use of foreign Stabnekoins, which recorded coins improved by a dollar, such as USDT and USDC reaching 56.95 trillion ($ 41.6 billion) in trade volume during Q1 2025, tripping from the 3rd quarter 2024.
“There is a shared feeling of crisis that if things continue in this way, foreign dollar coins can dominate the domestic market,” Cryptonews said.
Design of a dual model to solve cases of public trust and use
Unlike the previous efforts led by FINTE, the Consortium proposes a two -round edition model: one version supported by client funds held in custody through the trust structure and the other directly associated with deposits on the baffles held by the bank. The aim of the twins frames is to try out both scalability and user confidence as a result of Korean bruising experiences with Terra-Luna collapse In 2022.
The Korean Bank (side) provided cautious support to the banking efforts with the head of the Governor Ryoo Sang-Dai Introduction 24 June “It is desirable to first allow banks rather than non -banking entities, to issue stable -based stable and gradually expand.”
Analysts interpret the position of the side as a strategic preference that allows highly regulated established entities to create the basics for the release of digital currency before opening gates to FINTECH companies or international players.
Currency sovereignty in a global context
Stablecoin consortium is the brightest signal of South Korea’s intention Reaserert Cash sovereignty as digital assets of blurring traditional currency boundaries. Regulatory bodies and banks are afraid that the continuing growth of foreign stablekoin could weaken the role of WON in domestic digital transactions.
Korea now plays catching up with Japan and the EU, after the Japanese launch of the Progmatian coins with its highest banks and the framework of the European Central Bank, which opens the Euro-Pegged Stablecoin door.
While some observers frame Korean movement as defensive, others consider it a proactive shift that could eventually place a won coin as a regional clearing asset, especially in industries such as playing, K-pop merchandising and cross-border remit.
From caution to coordination
The terrask crisis, which caused billions of investors’ losses and was created in Korea, plunged a long shadow over the innovation of Stablecoin in the country. However, the aim of a fully supported bank of banks with transparency mechanisms, which is expected to be anchored in the upcoming digital Act on Activation, is to rebuild public confidence.
The final regulatory approval will depend on the assessment of the FSS risks and ongoing consultation with the Korean bank.
Coin-supported coins can initially integrate into applications for digital banking and payment systems, focus on use cases such as transfers, peer-to-peer transfers and interbank settlements. If successful, this model can inform the long -term CBDC plan of South Korea.
With Asia quickly appears as an epicenter Regulatory experiments Around Stablecoins, South Korea, Megabank Consortium, built a digital map, on its own conditions. Now the question is whether it can spread before the dominance of the dollar that becomes irreversible.
