"FSC weighs allowing banks to act as custodians for won stablecoin reserves...reported to National Assembly"

South Korea’s financial authorities are reportedly reviewing a plan under which banks would hold and manage reserve assets in connection with the introduction of won-backed stablecoins.

According to materials from the office of Rep. Park Sang-hyuk of the Democratic Party of Korea, a member of the National Assembly’s Political Affairs Committee, the Financial Services Commission (FSC) reported to the National Assembly that it would review a proposal for banks to serve as custodians for reserve assets backing won stablecoins. As a result, who holds and manages the reserves is expected to emerge as a key variable in the future stablecoin regulatory framework.

The FSC plans to review the制度 by referencing the current Virtual Asset User Protection Act, which requires user deposits to be placed with banks or held in trust.

The move is seen as aligning with a broader trend toward easing the separation between finance and virtual assets. Some interpret it as reflecting an intent to bolster the stability of reserve assets by leveraging banks’ capital strength and compliance capabilities.

Meanwhile, the FSC is also reviewing measures to expand the participation of traditional financial firms—such as banks and securities companies—in the digital-asset market. Specific parameters and mechanisms are expected to be finalized during discussions on the next, second-stage legislative process, including the Digital Asset Basic Act.