Korean Won Stablecoin Race Heats Up: Banks, Tech Giants, and Web3 Firms Vie for Leadership

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The race to launch a Korean won-pegged stablecoin is accelerating, with a powerful convergence of traditional financial institutions, tech conglomerates, and blockchain innovators positioning themselves at the forefront of South Korea’s digital finance transformation. With strong political backing, evolving regulatory clarity, and growing market demand, 2025 is shaping up to be a pivotal year for the country's stablecoin ecosystem. As the window for early-mover advantage opens, stakeholders across sectors are mobilizing resources, securing intellectual property, and building infrastructure to capture leadership in what could become one of Asia’s most significant digital currency markets.

This article explores the key players driving the韩元稳定币 (KRW stablecoin) movement, their strategic approaches, and the broader implications for financial innovation in Korea and beyond.

The Banking Consortium: Stability First, Scale Next

While central banks worldwide remain cautious about private stablecoins, the Bank of Korea (BOK) has signaled a measured openness—provided issuance begins under strict oversight. In June 2025, BOK’s First Deputy Governor Ryoo Sang-dai emphasized that KRW stablecoins should be introduced gradually, starting with regulated commercial banks before expanding to non-banking entities.

This policy stance has catalyzed the formation of a powerful banking alliance. Eight major financial institutions are reportedly planning to establish a joint venture dedicated to issuing a regulated韩元稳定币:

Backed by the Korea Financial Telecommunications & Clearings Institute (KFTC) and the Open Blockchain & Decentralized ID Association (OBDIA), this consortium aims to build a secure, interoperable foundation for digital money.

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Two primary models are under consideration:

  1. Trust-based issuance, where customer funds are held in segregated trust accounts.
  2. Deposit-token linkage, directly tying stablecoin value to bank deposits on a 1:1 basis.

KB Kookmin Bank, Korea’s largest retail lender, is leading the charge—already filing trademark applications for combinations like KBKRW, KRWST, and KBST. These moves signal not just brand protection but strategic intent to anchor the future of digital韩元稳定币 within traditional finance.

Shinhan Bank, another retail giant, has deeper crypto experience. It previously partnered with Hedera in 2021 to test韩元稳定币 use cases and participated in Project Pax, a cross-border remittance pilot between Korea and Japan using stablecoins. Its early experimentation positions it as both an innovator and a compliance leader.

Other members bring complementary strengths:

Together, they represent a formidable force—one prioritizing regulatory compliance, systemic stability, and nationwide reach.

Kakao Pay & Kaia: Super Apps Meet Web3 Ambition

If banks represent the “old guard” of韩元稳定币 development, Kakao Pay embodies the disruptive potential of tech-driven finance. As Korea’s dominant mobile payment platform—boasting over 60% market penetration in QR code transactions and peer-to-peer transfers—it wields unprecedented user access.

With President Lee Jae-myung’s pro-digital asset agenda gaining momentum, Kakao Pay moved swiftly. On June 22, 2025, it officially announced its韩원 스테이블코인 (won stablecoin) initiative and filed 18 trademark applications with the Korean Intellectual Property Office, including variations like KRWKP and KWRP. This aggressive branding strategy reflects high expectations for rapid market capture.

Crucially, Kakao Pay operates within a vast ecosystem:

This integration enables seamless transitions from chat to payment to investment—creating fertile ground for stablecoin adoption across everyday life.

Parallel to Kakao Pay’s efforts is Kaia, an EVM-compatible Layer 1 blockchain formed in August 2024 through the merger of Klaytn (Kakao’s blockchain arm) and Finschia (from LINE). With a combined user base exceeding 250 million across KakaoTalk and LINE, Kaia is uniquely positioned to scale韩원 스테이블코인 adoption at mass level.

In early June 2025, KaiaChain Chairman Sam Seo declared that “the stablecoin summer has just begun,” announcing plans to fully support韩원 스테이블코인 issuance on its mainnet. Already hosting USDT via partnership with Tether, Kaia has laid the technical groundwork for fiat-backed tokens.

Their vision? A unified “chain + social + payment” experience where users transact韩원 스테이블코인 directly within messaging apps—bypassing traditional gateways entirely.

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Danal: Reviving Early Momentum with POS Innovation

Long before mainstream interest in stablecoins, Danal was experimenting with digital money. In 2019, it launched PayCoin (PCI), achieving over one million registered users across online and offline merchants. However, unclear regulations around Virtual Asset Service Providers (VASPs) forced its suspension.

Now, with the pending Digital Asset Basic Act clarifying legal pathways for韩원 스테이블코인 issuance, Danal is re-entering the arena—not just as a payment processor but as an infrastructure builder.

In June 2025, Danal filed multiple patents related to “POS terminals supporting virtual asset payments.” These systems would allow merchants to accept韩원 스테이블코인 directly at point-of-sale while maintaining compliance through real-time reserve verification and off-chain settlement reconciliation.

This dual on-chain/off-chain architecture addresses two critical challenges:

By leveraging its extensive POS network and decades of payment processing expertise, Danal could become a silent enabler of widespread韩원 스테이블코인 adoption—especially in brick-and-mortar retail.

Nexus: Aiming for First-Mover Status on BNB Chain

While larger players await regulatory greenlights, startup Nexus is taking a bold approach: launch first, scale globally. Already live on BNB Chain, Nexus has deployed KRWx, a韩원 스테이블코인 pegged 1:1 to the Korean won.

CEO Jang Hyun-guk stated the goal clearly: “We aim to be the first韩원 스테이블코인 issuer.” To support this ambition, Nexus has filed trademark applications not only for KRWx but also for USDx, JPYx, and EURx—indicating plans for a multi-currency stablecoin suite.

Beyond technology, Nexus is building international structure. It plans to establish Nexus Stable HK, a Hong Kong subsidiary that will leverage favorable regulatory conditions for cross-border digital asset operations. This move underscores a long-term vision: position KRWx as part of a global settlement layer for digital finance.

Though smaller in scale than bank-led or super-app initiatives, Nexus exemplifies the agility and global mindset characteristic of Web3-native firms.

Other Key Players: Infrastructure Enablers

Even companies not planning direct issuance are poised to benefit:

These firms may not issue韩원 스테이블코인 themselves—but they’ll power those who do.

Frequently Asked Questions

Q: What is a韩원 스테이블코인 (KRW stablecoin)?
A: A韩원 스테이블코인 is a digital currency pegged 1:1 to the South Korean won (KRW), typically backed by cash or cash-equivalent reserves. It enables fast, low-cost transactions on blockchain networks while maintaining price stability.

Q: Is the韩원 스테이블코인 legal in South Korea?
A: While not yet fully regulated, the proposed Digital Asset Basic Act aims to create a legal framework for private institutions to issue韩원 스테이블코인 under financial authority supervision. Full compliance will depend on final legislation expected in late 2025.

Q: Who are the main competitors in the韩원 스테이블코인 race?
A: Key contenders include the eight-bank consortium led by KB Kookmin and Shinhan Bank, tech giants Kakao Pay and Kaia, payment innovator Danal, Web3 startup Nexus, and infrastructure providers like Samsung SDS and LG CNS.

Q: Can I buy or use韩원 스테이블코인 today?
A: Not widely available yet. However, Nexus’ KRWx is already live on BNB Chain. Broader public access is expected after regulatory approval in 2025–2026.

Q: How will韩원 스테이블코인 impact cross-border payments?
A: By enabling near-instant settlements without intermediaries,韩원 스테이블코인 could drastically reduce costs and time for remittances and international trade—especially when integrated with platforms like Kakao Pay or Project Pax.

Q: Will韩원 스테이블co인 replace cash or CBDC?
A: Unlikely. Instead, it will complement both physical currency and any future central bank digital won (CBDC), serving as a private-sector alternative optimized for digital commerce and DeFi applications.

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