Banks, fintech firms forge alliances for won-based stablecoins

Major financial institutions and fintech firms are exploring partnerships to gain an early foothold in the emerging stablecoin market ahead of the possible introduction of won-pegged stablecoins, according to industry officials Thursday.

Earlier this week, officials from KB Financial Group, Shinhan Financial Group, BNK Financial Group, Industrial Bank of Korea, Toss and iM Bank held a closed-door meeting Monday to discuss developments in digital asset regulations and strategies for responding to the emerging stablecoin market.

During the meeting, participants exchanged views on regulatory changes, the potential introduction of won-backed stablecoins and possible areas of cooperation.

KB Financial is said to be considering entering the won-backed stablecoin market in partnership with fintech platform Toss.

Under the arrangement being discussed, KB Kookmin Bank would issue the stablecoin while Toss would oversee distribution.

Cryptocurrency exchange Bithumb, which currently maintains a bank account partnership with KB Kookmin Bank, is also viewed as a potential partner.

In May, Hana Financi