"Banks Begin Preparations for KRW Stablecoin Issuance… Custody and Cross-border Remittance Tests Also Underway"

With the inauguration of the Lee Jae-myung administration and the ensuing official discussions on the institutionalization of KRW-based stablecoins, major commercial banks are accelerating their issuance preparations.

According to the financial industry on the 12th, six banks—KB Kookmin Bank, Shinhan Bank, Woori Bank, NH NongHyup Bank, Industrial Bank of Korea (IBK), Sh Suhyup Bank—and the Korea Financial Telecommunications & Clearings Institute (KFTC), are now participating in the incorporated association Open Blockchain & DID Association, which recently began preparations for issuing KRW stablecoins. In April, the association established a 'Stablecoin Division' and has since proceeded with consortium formation and proof-of-concept projects.

These banks are reportedly designing their issuance methods based on cases from the US, Japan, and other major countries. It is also known that they are internally conducting payment and remittance tests through dedicated teams.

In particular, Shinhan Bank, NongHyup Bank, and K Bank are participating in the PACS Project, led by major Japanese banks, working on a cross-border remittance proof-of-concept utilizing KRW stablecoins. The PACS Project is an international collaborative initiative verifying the applicability and effectiveness of stablecoins in cross-border remittance and payment environments.

Meanwhile, Bank of Korea Governor Chang Yong Rhee is scheduled to discuss KRW stablecoins, along with central bank digital currency (CBDC), during a dinner meeting with bank CEOs at the Bank Hall in Jung-gu, Seoul, on the 23rd.