Hana Bank Joins Korean Banks in Push for Won Stablecoins

On June 25, CoinNess Global reported in an X post, Hana Bank recently filed 16 trademarks for won-based stablecoins. This action aligns Hana Bank with other banks pursuing digital currency projects in South Korea. The bank is also working with several institutions and the Open Blockchain & Decentralized Identifier Association (OBDIA). They are seeking to establish a joint venture to issue a stablecoin that will be secured by the Korean won. These actions show Hana Bank’s role in assisting in expanding the country’s digital money economy.

Major South Korean Banks to Adopt and Regulate Stablecoin Issuance

Prior to Hana Bank, KB Kookmin Bank filed 17 trademark applications for won-linked stablecoins. Their filings include ticker symbols like KBKRW and KRWKB. These trademarks cover software related to blockchain and virtual currency transactions. KB Kookmin plans to build a national stablecoin consortium with major Korean banks. This consortium will coordinate the issuance of won-backed stablecoins across the banking sector.

Other South Korean banks, such as Shinhan Bank, Woori Bank, NongHyup Bank, and Industrial Bank of Korea, are also joining. Citi Korea, Standard Chartered Korea, and Suhyup Bank are also involved in the joint venture. These banks aim to create a regulated environment for stablecoin issuance. Their collaboration reflects growing interest in integrating stablecoins safely into the financial system.

Governmental Support Strengthens Stablecoin Regulatory Frameworks

The Bank of Korea (BOK) supports Won stablecoins cautiously. Ryoo Sang-dai, BOK’s senior deputy governor, prefers a gradual introduction. He suggests limiting issuance initially to regulated commercial banks. This controlled approach will allow experience to develop before expanding to non-bank sectors. Ryoo warns that stablecoins can have a significant impact on monetary policy and settlement mechanisms. Strong protection is needed to protect the users and the stability of markets.

Political factors also affect won stablecoin development. President Lee Jae Myung and the Democratic Party push for regulatory frameworks permitting won-backed stablecoins. Proposed laws aim to build infrastructure and prevent South Korea from falling behind in digital finance. The government views stablecoins as strategic for the country’s financial innovation future. This political support adds momentum to stablecoin projects nationwide.

South Korea Pursues Financial Market Reforms Amid Digital Currency Rise

Meanwhile, the Bank of Korea advances its central bank digital currency (CBDC) project. Since late 2023, the BOK has conducted CBDC pilot tests with the Bank for International Settlements. Ryoo Sang-dai confirmed plans for a second pilot phase involving major commercial banks. South Korea is exploring both public CBDCs and private stablecoins simultaneously. This dual approach aims to modernize the country’s financial system through various digital currency forms.

Coordinated Efforts to Integrate Stablecoins into National Finance

South Korean authorities are also pursuing broader financial reforms due to digital currencies. These include extending currency market trading hours and allowing more foreign investor participation. Accelerated market opening reforms aim to create a more dynamic financial market. Such measures align with global trends toward digital financial systems. Together, banks, regulators, and the government work to integrate Won stablecoins into South Korea’s financial infrastructure.