Financial firms sign partnerships in preparation for issuing stablecoins

Rep. Min Byoung-dug of the ruling Democratic Party of Korea delivers a lecture on won-based stablecoins during a forum at the National Assembly in Seoul, July 22. Yonhap

Commercial banks in Korea are teaming up with digital finance firms, both domestic and international, in a bid to explore new business opportunities in the fast-growing stablecoin sector, industry officials said Tuesday.

The partnerships come as the Lee Jae Myung administration accelerates discussions around legalizing a won-based stablecoin.

A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging it to a fiat currency, such as the U.S. dollar.

It is gaining traction for its potential to serve as a bridge between the decentralized world of cryptocurrency and the stability of traditional finance.

Hana Bank, Korea’s third-largest lender, said Monday that it signed a memorandum of understanding (MOU) with Circle, the U.S.-based issuer of USDC, the world’s second-largest stablecoin firm by market capitalization.

“We have not yet outlined concrete plans for our partnership with Circle,” a Hana Bank PR official said. “But we expect this collaboration to bring us a step closer to issuing stablecoins in Korea.”

OK Savings Bank signed an MOU in July with Danal, a domestic digital payments firm, to cooperate on the development of a won-backed stablecoin.

The two parties aim to pursue blockchain-based financial services and identify practical applications for digital currency in the domestic market.

Other major lenders are preparing internally for the stablecoin shift, while they have yet to secure external partners.

KB Kookmin Bank established a virtual asset-committed council to devise strategies for crypto-related businesses and prepare response scenarios for potential regulatory changes.

“The council is also exploring partnerships with fintech firms that could help us advance our own won-based stablecoin initiative,” a KB Kookmin Bank PR official said.

Shinhan Bank has formed a task force made up of experts in business planning, anti-money laundering, compliance, technology and consumer protection to carry out practical groundwork for future stablecoin issuance.

Woori Bank has launched a specialized team focused on digital asset operations, while NongHyup Bank is conducting cross-border remittance tests and managing its own digital asset task force.

KakaoBank, a major internet-only bank, said it will “fully cooperate” with its parent company Kakao in operating a newly formed stablecoin task force.