South Korea's eight major banks are jointly preparing for the issuance of the Korean Won Stablecoin, which will be launched by the end of this year.

According to local news media in South Korea on June 25, eight major banks in South Korea are preparing to establish a joint venture company for the issuance of a Korean Won Stablecoin. Participating banks include Kookmin Bank, Shinhan Bank, Woori Bank, Nonghyup Bank, Industrial Bank of Korea, Suhyup Bank, Citibank Korea Branch, and Standard Chartered Korea Branch. The project is a collaboration between banks, the Open Blockchain and Decentralization Identity Association, and the Korea Financial Telecommunications & Clearings Institute.

Currently, the parties involved are still discussing common infrastructure. If regulations permit, the joint venture is expected to be officially launched by the end of this year or early next year. Currently, the project team is considering two stablecoin issuance models: one is the trust model, where customer funds are held in trust before stablecoin issuance; the other is the deposit-backed coin model, where stablecoin is pegged to bank deposits.