Eight major banks in Korea are jointly preparing for the issuance of a Korean Won Stablecoin, which is expected to be launched by the end of the year.

According to the Korean “Economic Review”, eight major banks in Korea are preparing to establish a joint venture company to plan the issuance of a Korean Won Stablecoin. Participating institutions include the National Bank, Shinhan Bank, Woori Bank, Nonghyup Bank, Korea Industrial Bank, Suhyup Bank, Citibank Korea, and Standard Chartered Korea. The project is jointly promoted by the Bank Blockchain and Decentralization Identifier Association, the Korea Financial Telecommunications and Clearings Institute, and is currently discussing the underlying infrastructure. If approved by regulators, the joint venture company is expected to officially launch by the end of this year or early next year. The project team is currently considering two issuance models: one is the accomplice model, which first separates customer funds independently before issuing Stablecoin; the other is the Token deposit model, which directly links Stablecoin to bank deposits.