South Korea's Finance Giants Gear Up for Pegged Stablecoin Framework

consensus_whisperer · 2026-01-31T11:14:06+00:00

South Korea's banking sector is adapting to the potential legalization of won-pegged stablecoins, reversing previous bans. Major banks are forming alliances to create stablecoin infrastructure, but face regulatory scrutiny from the central bank to ensure financial stability.

consensus_whisperer

2026-01-31 11:14:06

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South Korea’s financial landscape is undergoing a significant transformation as major banking groups position themselves for the anticipated legalization of won-pegged stablecoins. This marks a notable reversal from the 2019 regulatory ban, signaling renewed government interest in digital asset regulation. Industry sources indicate that the shift reflects both technological advancement in blockchain infrastructure and growing institutional demand for domestic stablecoin solutions.

Coalition Strategy: Leading Banks Establish Stablecoin Infrastructure

According to NS3.AI, Hana Financial Group is spearheading a strategic alliance with BNK, JB Financial Group, and other major players to create specialized infrastructure for pegged stablecoin issuance. The consortium approach demonstrates how traditional finance is adapting to emerging digital asset requirements. Once regulatory approval materializes, these institutions plan to establish a dedicated special-purpose company to manage stablecoin operations and maintain compliance frameworks. This collaborative model allows multiple banks to share technical and operational resources while ensuring robust governance structures for pegged asset management.

Regulatory Hurdles: Central Bank Scrutiny on Pegged Asset Issuance

The pathway to legalization faces notable challenges from South Korea’s central bank, which has voiced concerns regarding stablecoin issuance by technology conglomerates. Central bank officials advocate for imposing structural restrictions on bank-led consortia to ensure financial stability and consumer protection. The government is working to finalize comprehensive stablecoin regulations in the coming weeks, balancing between enabling innovation through pegged currency solutions and maintaining prudent oversight. This regulatory tension reflects broader global debates about stablecoin governance, particularly regarding which entities should be permitted to issue and manage pegged digital assets linked to national currencies.

The outcome of South Korea’s regulatory framework will likely influence how other Asian financial systems approach stablecoin legalization and institutional-grade digital asset adoption.

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