As stablecoins gain momentum in the global cryptocurrency industry, eight banking giants from South Korea have come together to establish a stablecoin pegged to the won, according to local reports. With plans to launch two models (trust-based and deposit-backed), this project marks the banking industry's first foray into digital assets through a consortium.

“A stablecoin backed by the Korean won can fill a niche as an alternative to traditional payment methods such as bank transfers or currency exchange,” said Sam Seo, president of the Kaia DLT Foundation.

It is worth noting that this measure comes weeks after South Korea decided to reform cryptocurrency regulation under the mandate of newly elected President Lee Jae-myung. Earlier this month, the Democratic Party proposed the Basic Digital Assets Act, with plans to legalize stable tokens.

Notably, the latest initiative aims to challenge the dominance of dollar-based currencies in the global financial market and maintain leadership in the digital asset sector. Commenting on the initiative, a bank spokesperson stated:

“There is a shared sense of crisis: if the situation continues like this, foreign dollar currencies could dominate the domestic market. We need to secure the independence and competitiveness of the national financial system through a digital currency based on the won.”

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