Korean Firms Jump Into Stablecoin Game
Upbit and Naver Pay are the latest South Korean companies throwing their hats into the stablecoin ring. It’s part of a broader shift as local firms start leveraging clearer regulations around these digital assets.
On Tuesday, Dunamu—the company behind Upbit, South Korea’s biggest crypto exchange—confirmed it’s teaming up with Naver Pay, a major fintech player, to develop a won-backed stablecoin. A Dunamu official hinted that Naver Pay would likely take the lead, with Upbit playing a supporting role. “We’ll nail down the specifics once the system’s in place,” they added, though details remain fuzzy for now.
This isn’t coming out of nowhere. Late last month, Naver Pay announced plans to spearhead a consortium focused on launching stablecoins pegged to the Korean won. The timing makes sense—regulators have been warming up to the idea, and companies are scrambling to get ahead of the curve.
Regulators Are Playing Catch-Up
The push from Upbit and Naver Pay lines up with growing chatter about stablecoin rules in South Korea. Just a few days ago, President Lee Jae-myung hinted that businesses might soon get the green light to issue stablecoins tied to the national currency.
That’s sparked a wave of interest, not just from crypto outfits but from traditional banks too. KB Kookmin, Shinhan, Woori, and even Citibank Korea are reportedly exploring their own stablecoin projects. It’s a crowded field, and everyone’s jockeying for position.
Lawmakers have been racing to draft policies since May, partly to keep USD-pegged stablecoins from dominating the market. The idea seems to be carving out a space for homegrown alternatives before global players take over.
Why This Matters
South Korea’s crypto scene is already huge—about 27% of adults aged 20 to 50 own digital assets, and a staggering 70% say they’d buy more. Stablecoins could slot right into that ecosystem, offering a less volatile way to move money without ditching crypto entirely.
But it’s not just about convenience. If local firms can establish won-backed stablecoins early, they might have a shot at influencing how the global market shapes up. That’s a big “if,” though. Plenty of hurdles remain, from regulatory fine print to winning over skeptical users.
For now, all eyes are on how these partnerships play out—and whether South Korea’s stablecoin ambitions can gain real traction. One thing’s clear: the race is on.
