Eight major banks in South Korea plan to jointly establish a Korean Won Stable Coinissuance company: to prevent the dominance of the US dollar Stable Coin in the local market

South Korea's eight major banks will cooperate to establish issuance, a won-based Stable Coin company, to counter the dominance of the US dollar and promote digital assets, pending the official launch of relevant regulations after improvement. (Synopsis: Animoca Brands, Standard Chartered Bank and HKT join hands to prepare issuance Hong Kong Stable Coin, targeting cross-border payments) (Background supplement: Full interpretation of Hong Kong's Stable Coin Ordinance: from definition, regulatory framework, eligibility to market impact) According to South Korea's Economic Review today (25), 8 major banks in South Korea (including: KB Kookmin Bank, Shinhan Bank, Woori Bank... ) is preparing to establish a KRW-based Stable Coin joint venture to counter the dominance of the US dollar Stable Coin and consolidate South Korea's influence in the digital asset market, marking the first time that the Korean banking industry has entered the digital asset space in the form of an alliance. Two issuance models to be finalized, in line with new regulations At present, these banks are still discussing common infrastructure, and the establishment of joint ventures is expected to be completed by the end of this year and early next year at the earliest. As for Stable Coin's issuance approach, they are conducting technical and legal evaluations of the "fiduciary model": the escrow of customer funds with issuanceToken, or the "deposit token type": 1:1 linked to bank deposits. The Korea Financial Commission is also expected to release a blueprint for the institutionalization of virtual assets in the second phase, including Stable Coin, in the second half of the year. Competitive Landscape and Follow-up Outlook At present, the Korean financial industry is following whether this plan can bring balance to the Korean digital coin ecosystem in the competition between the central bank's digital coin (CBDC), private issuancecoin and overseas Stable Coin. Some bankers said: If the current situation continues, foreign dollar Stable Coin may dominate the Korean market, so it is necessary to ensure the independence and competitiveness of domestic finance through the Korean won digital coin. It is understood that this joint venture is led by the private sector, and unlike the CBDC promoted by the Bank of Korea, whether to carry out technical or operational cooperation with the central bank in the future is still subject to negotiation. However, the market expects that Won Stable Coin can be applied to multiple scenarios such as offshore forex payments, domestic mobile payments, and Web3 P2P financial services in the future. However, the specific licensing method and consumer protection are not yet clear, and the implementation of the system and market trust are still the primary issues. Related reports Stable Coin "Sino-US route dispute": Hong Kong's B-side breakthrough and the mainstream Yang conspiracy in the United States How does a comparative analysis of the Stable Coin Act in Hong Kong and the United States affect the global Web3 ecosystem? Buy funds with Stable Coin! Hong Kong Victory Securities established "Victory VSG" virtual asset multi-strategy fund (South Korea's 8 major banks plan to establish a joint venture Won Stable Coinissuance company: cannot let the US dollar Stable Coin dominate the local market) This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Block Chain News Media".