South Korea’s Banks Dive Deep into Cryptocurrency and Stablecoins
South Korea’s financial giants are swiftly embracing the world of cryptocurrency and stablecoins. Renowned banks, including Shinhan, Woori, KEB Hana, and KB Kookmin, are establishing internal teams dedicated to developing custody solutions, digital wallets, and even proprietary coins.
Formation of Crypto Task Forces by Leading Banks
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Recent developments reveal that Woori Bank has established a Digital Asset Team within its New Business Alliance Platform Department. This team is diligently exploring crypto custody solutions while also strategizing the issuance of stablecoins. Additionally, Woori has revived a previous crypto initiative. By late last year, discussions with a blockchain startup and other firms to form a consortium for issuing won-backed stablecoins were already in progress.
Meanwhile, KB Kookmin has taken significant steps by launching a Digital Asset Response Council in June, encompassing its credit card, insurance, and securities affiliates under the KB Financial Group umbrella. The council’s mission is crystal clear: to devise rapid-response strategies for any policy shifts and foster collaborations with external partners.
Shinhan’s Strategic Advancements and Trademark Applications
Shinhan Bank is significantly advancing with a dedicated 20-member crypto task force focusing on custody, wallets, and token services. KB Kookmin, on the other hand, has been proactive in securing its position by filing applications for 32 trademarks related to won-based stablecoins and an additional 49 for coins pegged to other currencies. This strategic move demonstrates their early claim in the evolving digital currency landscape.
Under the administration of Moon Jae-in in 2018 and 2019, ICOs faced bans, and regulations were tightened. However, with President Lee Jae-myung taking office in summer 2025, there’s a supportive stance towards regulated crypto innovation. Lawmakers are contemplating legislation that would empower banks to issue stablecoins, offer custody services, and operate digital exchanges. These proposals are currently being reviewed by national assembly committees and could soon become law.
Participation of Smaller Financial Entities
It’s not just the major players taking action. Smaller institutions like K Bank, a digital-only bank associated with the Upbit exchange, have established their own digital asset task force. Similarly, Busan Bank, a regional institution, has formed a blockchain research team to explore ledger applications in finance. Even these smaller players recognize the potential and are eager to participate in the crypto landscape.
Financial institutions foresee a clear trajectory once regulations are established. They understand that legacy systems will require upgrades to accommodate on-chain settlements. Additionally, they are aware of the fierce competition from crypto-native firms. By preparing now, they aim to be well-positioned to seize opportunities as the legal landscape evolves.
South Korea’s banks are not leaving anything to chance. They are actively building teams, securing trademarks, and forming partnerships. This proactive approach ensures that when legal frameworks shift, they will be at the forefront of the industry’s transformation.
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