Heated race for stablecoin leadership

Hana Financial-led consortium gets off the ground

Participants include BNK, iM Financial, and SC First Bank, among others

Banks, card firms and fintechs form cross-industry alliances

Hana Financial Group has joined hands with BNK Financial Group and iM Financial Group, among others, firing the opening salvo in the race to lead the won-denominated stablecoin market. With the government’s submission of the “Digital Asset Framework Act” imminent, expectations are growing that cross-industry alliances between financial companies such as banks and card issuers and fintech firms will accelerate in earnest.

According to the financial industry on the 16th, Hana Financial recently formed a consortium to issue stablecoins with BNK Financial, iM Financial, SC First Bank, OK Savings Bank and others. Among the four major financial holding groups—KB, Shinhan, Hana and Woori—Hana Financial is the first to officially announce the launch of a stablecoin consortium.

A key feature of the consortium is the heavy presence of regional-based financial institutions. BNK Financial has its core base in Busan, iM Financial in Daegu and North Gyeongsang Province, and OK Savings Bank in the Chungcheong region. An official at Hana Financial said, “This is a strategy to build a nationwide stablecoin distribution network,” adding, “There are also financial institutions currently considering joining.”

Hana Financial moved preemptively to form the consortium as the submission of the Digital Asset Framework Act—centered on bank-led stablecoin issuance—is approaching. Financial authorities and the Democratic Party plan to finalize coordination of the bill at a closed-door party-government consultation scheduled for the 20th. In particular, as the government has narrowed its direction toward allowing stablecoin issuance first to bank-centered consortia (equity stake of 50%+1 share), analysts say financial holding groups with bank affiliates are emerging as the core of the ecosystem.

Other financial holding groups are also moving faster. Shinhan Financial plans to wrap up work to form a stablecoin consortium as early as the first quarter. KB Financial also plans to move in earnest to secure partners once the Digital Asset Framework Act is finalized.

The industry believes that not only alliances among financial firms but also cross-industry tie-ups with fintech companies will be the decisive factor. The thinking is that teaming up with fintech firms that operate large-scale platforms—such as a Naver–Dunamu alliance or Kakao and Toss—would be advantageous in securing leadership in stablecoins.

By Jang Hyun-joo blacksea@hankyung.com