The Big Boys are Coming

Readers of this newsletter will know I have some deep feelings on the KRW stablecoin.

Regardless of what I think about the matter, deep pockets are preparing to cook.

Here are some notable things that happened in Korea recently:

Circle Joins the Party

• The U.S.-based company Circle, which issues the major global stablecoin USDC, has held private meetings with the Bank of Korea and National Assembly officials.

• This signifies that established international players are taking a serious interest in the developing South Korean stablecoin market.

Domestic Banks Form a United Front

• To counter the potential dominance of foreign, dollar-pegged stablecoins, a consortium of eight major South Korean banks is forming.

• This group, which includes giants like KB Kookmin, Shinhan, and Woori, plans to create a joint venture to issue a stablecoin pegged to the Korean Won.

• Their goal is to maintain control over the domestic digital asset market and ensure the competitiveness of the Korean financial system.

Fintech and Big Tech Make Their Moves

• KB Kookmin Bank, beyond its role in the consortium, has independently filed for 17 stablecoin-related trademarks (e.g., "KBKRW") to secure its brand.

• Tech giants Kakao Pay and Kakao Bank have also filed for numerous similar trademarks, showing that major fintech players are actively preparing.

• Naver Pay has explicitly stated its ambition to lead in the stablecoin market, viewing a won-based stablecoin as a core part of its strategy to become a "global digital financial hub."

• Naver Pay believes its existing ecosystem, with over 30 million users, provides the perfect environment to launch and scale stablecoin services.