Financial holding companies are speeding up alliances to preempt the won stablecoin market. They appear to be trying to seize the lead before the second-phase virtual asset law (Digital Asset Basic Act), which includes a plan to institutionalize won stablecoins, is introduced. So far, Shinhan Financial Group, Hana Financial Group, and KB Financial have formed a two-strong structure, and the variable is which side Woori Financial Group will join.
According to the financial sector on Apr. 7, the second-phase virtual asset law is expected to include a provision that a consortium in which the banking sector participates with at least 51% must be the issuer of won stablecoins. Accordingly, the four major financial holding companies—KB, Shinhan, Hana, and Woori—are working with various corporations to secure related technology and infrastructure.
Shinhan and Hana have a high likelihood of cooperation, to the point that Chair Jin Ok-dong and Chair Ham Young-joo have personally discussed matters related to stablecoins. Hana has been laying the groundwork by signing memorandums of understanding (MOUs) with Dunamu at the end of last year and with BNK Financial Group, iM Financial Group, Standard Chartered Bank Korea, and OK Savings Bank early this year.
The two chairs are also said to be in talks with Samsung to secure payment infrastructure using stablecoins. The picture is that stablecoins issued with reserves prepared by the two financial holding companies would be used for various payments via Samsung Pay. An industry official said, "Shinhan and Hana are taking the most aggressive steps. If they join with Samsung, their influence in the won stablecoin market will be formidable."
KB Financial maintains close ties with Toss domestically and Circle overseas. It has been discussing cooperation on stablecoins with Toss since the second half of last year, and last year conducted a proof of concept (PoC) with Circle based on its stablecoin issuance and management platform "Circle Mint." A meeting is also scheduled between Circle founder and CEO Jeremy Allaire, who visits Korea on Apr. 13, and KB Financial's management.
Woori Financial is cited as the variable in this two-strong structure. Previously, ahead of Chair Yim Jong-ryong's renewed term, Woori Financial said, "Chair Yim is the right person to systematically prepare for the AI and stablecoin era and play a role in securing a solid market-leading position." Woori Financial has decided to introduce won stablecoin payments to "To the Moon," Woori Bank's in-house ticketing platform slated for launch.
Cooperation with Kbank, in which Woori Financial holds about 9% equity, is also anticipated. Kbank President Choi Woo-hyung also said, "We are in talks with several commercial banks on stablecoin cooperation."
An industry official said, "Depending on which side Woori Financial takes, the leadership structure in won stablecoins may settle into a two-strong system, or tilt all the way to a single-strong system."