South Korea’s Draft Could Put Banks at Center of Won Stablecoin Issuance

A draft of South Korea’s planned digital asset law may propose a bank-led consortium to issue won-pegged stablecoins, setting up competition among firms for customer and merchant access.

The draft may also propose roles for exchanges and third-party payment platforms in moving the stablecoins between consumers and merchants. That would make user access and payment uses areas of competition alongside issuance.

Dunamu, which operates Upbit, and Naver Financial could be a factor in that contest. If their services are permitted to connect, Dunamu could earn revenue from stablecoin trading, while Naver Financial could collect fees from merchant payments and settlement.

The draft is expected to be released this month.