The top eight South Korean banks are forming a joint venture to issue a won-pegged stablecoin to cut reliance on foreign digital currencies. Backed by the Financial Supervisory Service and blockchain groups, the move marks the country's first joint entry into the digital asset market.

The launch is expected by late 2025 or early 2026, pending regulatory approval.

The group is weighing two issuance models: a trust-based system where customer funds are segregated and a deposit token model that links digital tokens to bank liabilities on a 1:1 basis. The stablecoin will comply with South Korea's proposed Digital Asset Act.

Although separate from the central bank's CBDC project, the token could connect to national systems later. Planned use includes domestic payments, cross-border transfers, and Web3 services. Legal clarity and public trust are essential for the project's success.