South Korean banks plan joint venture for won-based stablecoin

Eight major South Korean banks are preparing to launch a joint venture to issue a won-based stablecoin, according to local news outlet Economic Review. The participating banks are KB Kookmin, Shinhan, Woori, NongHyup, Industrial Bank of Korea (IBK), Suhyup, Citibank Korea and Standard Chartered Bank Korea. The project is being developed in collaboration with the Open Blockchain & Decentralized Identifier Association (OBDIA) and the Korea Financial Telecommunications & Clearings Institute (KFTC). While discussions about shared infrastructure are still underway, the joint venture could launch by the end of this year or early next year, pending regulatory developments. Two issuance models are currently under consideration: a trust-based model, where customer funds are held in a separate trust before stablecoins are issued, and a deposit-token model, which pegs the stablecoin to bank deposits.