Eight major banks in South Korea are preparing to set up a joint venture to issue a Korean won stablecoin

PANews reported on June 25 that according to a report by the local Korean news media Economic Review, eight major banks in South Korea are preparing to establish a joint venture to issue Korean won stablecoins. The participating banks include Kookmin Bank, Shinhan Bank, Woori Bank, Nonghyup Bank, Korea Development Bank, Suhyup Bank, Citibank Korea Branch and Standard Chartered Bank Korea Branch. The project is jointly developed by the bank and the Open Blockchain and Decentralized Identifier Association and the Korea Financial Telecommunications and Clearing Agency.

At present, the relevant parties are still discussing the common infrastructure. If the regulation allows, the joint venture is expected to be officially launched at the end of this year or early next year. At present, the project team is considering two stablecoin issuance models: one is the trust model, which first trusts the customer funds separately and then issues stablecoins; the other is the deposit token model, which links stablecoins to bank deposits.