Jung Jin-wan, the CEO of Woori Bank, will meet directly with representatives from Tether and Circle, the first and second largest players in the global stablecoin market, this week. The four major banks (KB Kookmin, Shinhan, Hana, and Woori Bank) have scheduled meetings with Circle, while other banks, in addition to Woori Bank, are reportedly showing significant interest in collaborating with Tether, which has a high market share.
According to the financial industry on the 20th, CEO Jung will consecutively meet with representatives from Tether, the issuer of USDT, and Circle, the issuer of USDC, this week. Both companies are dollar-backed stablecoin issuers fixed to a value of $1, holding a combined market share of 62% and 25.7%, respectively. In the case of Circle, CEO Jung is set to discuss cooperation plans with Hiss Tarbert, Circle's president, who is visiting Korea for the first time.
The direct meeting at the level of the CEO is interpreted not merely as a discussion but as Woori Bank's determination to secure leadership in the digital assets market. Woori Bank operates a 'Digital Asset Team' to respond to virtual asset businesses. CEO Jung emphasized proactive responses to changes in the digital environment during last month's second-half management strategy meeting and expressed his intention to explore stablecoin models.
In particular, the recent discussions regarding the introduction of a won-based stablecoin have highlighted the role of commercial banks. There are suggestions that banks are suitable to ensure stability in new assets and to meet legal responsibilities and regulatory compliance. The day before, Lee Chang-yong, the governor of the Bank of Korea, appeared before the National Assembly's Planning and Finance Committee, recognizing the need for a won-based stablecoin while proposing a bank-centered approach, citing concerns about side effects such as money laundering and capital outflow if non-bank issuance is permitted.
It is natural for banks to take an interest in Tether or Circle. If a bank were to issue a won-based stablecoin domestically, it would create demand to exchange it for a dollar-based stablecoin, necessitating partnerships for smooth currency exchange. Additionally, cooperation could be discussed in various areas such as domestic distribution, remittances, and international transactions. Hana Bank, for its part, already entered into a comprehensive memorandum of understanding (MOU) with Circle last May.
While the financial industry's attention is focused on Circle due to President Tarbert's visit this week, banks are actually showing greater interest in Tether, which has more than double the market share in the stablecoin sector. Even if they do not meet this week like Woori Bank, all four major commercial banks are reportedly probing meetings with Tether.
Tether and Circle are also making moves to secure the Korean market, where discussions about the won-based stablecoin are active. President Tarbert's visit, being considered a key figure at Circle, exemplifies this, while Tether has recently hired Korean staff to manage the Korean market and is also recruiting public relations personnel.