Korean Firms Jump Into Stablecoin Game
South Korea’s crypto scene just got more interesting. Upbit, the country’s biggest exchange, and Naver Pay, a major fintech player, are teaming up to create a stablecoin pegged to the Korean won. It’s not entirely surprising—regulators have been clearing the path for this kind of move lately, and companies are rushing to take advantage.
A Dunamu official (Dunamu runs Upbit) mentioned that Naver Pay will likely lead the project, with Upbit playing a supporting role. The details aren’t fully ironed out yet, though. “We’ll figure out the specifics once the system’s in place,” they said. Not the most concrete statement, but that’s how these things go early on.
Regulators Pave the Way
This isn’t happening in a vacuum. Back in late June, Naver Pay floated the idea of heading a consortium to launch won-backed stablecoins. And now, with President Lee Jae-myung pushing to let companies issue them officially, the pieces are falling into place.
Banks are getting in on it too. KB Kookmin, Shinhan, Woori, and even Citibank Korea are reportedly working on their own stablecoin projects. It’s a bit of a gold rush—everyone wants a piece of the action before someone else dominates the market.
Why the Rush?
Part of it’s about control. Lawmakers don’t want USD-pegged stablecoins like Tether or USDC to take over. If Korean firms can establish their own stablecoins first, they might carve out a decent slice of the global market.
And there’s demand for it. South Korea’s crypto adoption rates are some of the highest in the world—about 27% of adults aged 20 to 50 own crypto, and a whopping 70% say they’d buy more. Stablecoins could make trading smoother, especially with the won’s volatility.
Still, it’s early days. Regulations aren’t fully baked, and collaborations like Upbit and Naver Pay’s are just getting off the ground. But if things go smoothly, South Korea could become a bigger player in the stablecoin space than anyone expected.
Then again, that’s a big “if.” Crypto moves fast, and regulators don’t always keep up. We’ll see how this plays out.
