Key Takeaways
- South Korea’s major banks are partnering with digital finance firms to tap into the booming stablecoin sector.
- Regulators in Seoul are close to approving new stablecoin rules.
- U.S. progress on stablecoin legislation is pushing other countries, including South Korea, to speed up their own regulatory plans.
South Korea’s stablecoin ambitions are gaining momentum, with the country’s biggest commercial banks striking deals with digital asset firms to explore new opportunities in the fast-growing sector.
The push comes under the newly elected pro-crypto government, which campaigned on lifting the ban on spot crypto exchange-traded funds and fast-tracking stablecoin regulations.
Banks and Digital Finance Firms Join Forces
According to the Korea Times, Korean commercial banks are partnering with domestic and international digital finance companies to invest in stablecoin ventures.
On Monday, Hana Bank — the nation’s third-largest lender — announced a memorandum of understanding (MOU) with Circle, the U.S.-based issuer of USDC, the world’s second-largest stablecoin by market value.
“We have not yet outlined concrete plans for our partnership with Circle. But we expect this collaboration to bring us closer to issuing stablecoins in Korea,” a Hana Bank executive said.
Just last month, OK Savings Bank signed a similar MOU with Danal, a local digital payments company, to work on a won-backed stablecoin.
These partnerships are unfolding as President Lee Jae Myung’s administration advances discussions on legalizing a domestic stablecoin.
South Korea’s Journey From Caution to Crypto Ambition
Despite being a tech-forward nation, South Korea has long taken a cautious approach to crypto, focusing on investor protection.
It was among the first countries to regulate crypto trading but failed to keep pace with evolving rules in the West.
The previous administration delayed stablecoin and tax legislation for years and refused to lift the ban on spot crypto ETFs.
The new leadership in Seoul is signaling a shift. President Lee has pledged to green-light stablecoin regulations and allow spot ETF investments, marking a clear break from the past.
The timing aligns with global momentum — particularly in the United States, where the Trump administration has passed multiple pro-crypto measures.
The stablecoin law and Market Structure Bill have cleared the House of Representatives, with further regulatory clarity expected by year’s end.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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