The eight major banks in South Korea are planning to establish a joint venture to issue a won stablecoin and are exploring two issuance models
ChainCatcher news, according to the South Korean Economic Review, eight major banks in South Korea are preparing to establish a joint venture to issue a Korean won stablecoin. The participating institutions include Kookmin Bank, Shinhan Bank, Woori Bank, NongHyup Bank, Korea Development Bank, Suhyup Bank, Citibank Korea, and Standard Chartered Bank Korea. The project is being jointly promoted by the banks, the Blockchain and Decentralized Identifier Association, and the Korea Financial Telecommunications and Clearing Institute, and discussions are still ongoing regarding the underlying infrastructure.If regulatory approval is granted, the joint venture is expected to officially launch by the end of this year or early next year. The project team is currently considering two issuance models: the first is a trust model, where customer funds are independently trusted before issuing the stablecoin; the second is a deposit token model, which directly links the stablecoin to bank deposits.