South Korea's stablecoin market competition heats up: longer make a strong push, who will stand out?

With the South Korean government's positive attitude towards stablecoins pegged to the local currency, the South Korean cryptocurrency industry is poised for action. Several major players are actively positioning themselves, hoping to gain an advantage in the regional and even global stablecoin competition.

The National Assembly is reviewing relevant bills to provide a legal basis for private institutions to issue Korean won stablecoins, and regulatory authorities are also accelerating the formulation of operational norms. The second half of 2025 to the first half of 2026 is expected to be a key period for explosive growth in the South Korean stablecoin market.

Banking Alliance: A Pioneer of Regulatory Preferences

The Bank of Korea holds a cautious attitude towards stablecoins, believing that they should first be issued by strictly regulated commercial banks. Currently, eight major commercial banks are planning to establish a joint venture to issue a Korean won stablecoin, including KB Kookmin Bank and Shinhan Bank.

The project team is considering two issuance schemes: the trust model and the deposit token model. National Bank, as the core leading party, has initiated the relevant trademark application process. Shinhan Bank has accumulated experience in stablecoin pilots and cross-border payments. Other participating banks also have their own advantages in areas such as CBDC testing and interbank payments.

Kakao Pay and Kaia: The Ambitions of Tech Giants

Kakao Pay, as the leader in the South Korean payment sector, has recently submitted multiple trademark applications related to stablecoins, covering areas such as virtual asset trading and electronic transfers. It plans to leverage the advantages of deep integration of social, payment, and financial services to provide large-scale application scenarios for stablecoins.

The Kaia public chain announced that it will promote the issuance of the Korean won stablecoin on its mainnet. Kaia is collaborating with super applications like Kakao Pay to achieve integrated cross-platform circulation of "on-chain + social + payment".

Danal: The Return of a Payment Veteran

The well-established payment service provider Danal has recently restarted its digital currency business and submitted a patent application related to POS terminals supporting virtual asset payments. With its mature POS network and clearing system, Danal has advantages in the stablecoin payment and settlement process.

Nexus: The First Mover of Startups

The blockchain startup Nexus has pre-issued a Korean won stablecoin named KRWx on the BNB Chain and has applied for the related trademark. The company also plans to issue more fiat-backed stablecoins and is working on expanding into the international market.

Other Potential Participants

Samsung SDS's Nexledger and LG CNS's CBDC solutions are also seen as potential stablecoin infrastructure providers. These IT giants, with their mature enterprise-level blockchain technology, are expected to play an important role in the stablecoin ecosystem.

As policies gradually become clearer, competition in the South Korean stablecoin market is intensifying. Banks, tech giants, and startups are showcasing their strengths, and it is worth keeping an eye on who will stand out in this competition in the future.