Digital currency pioneered by Korean first-timers makes debut in a test phase, as reported by fanC.
South Korea's First Won-Pegged Stablecoin, KRWIN, Takes Center Stage
South Korea is making strides in the digital asset market with the test launch of its first won-pegged stablecoin, KRWIN. Developed by fanC and Initech, KRWIN is designed to assess the technical feasibility of the digital asset, including its transferability and practical applications.
Currently, the circulation of KRWIN is limited to a select group of members and affiliated platforms for evaluation. Notably, fanC, the developer and issuer of KRWIN, aims to position itself at the forefront of Web3 payment innovation.
As the industry moves faster than regulation in the adoption of won-denominated stablecoins, South Korea's government is actively working on establishing a comprehensive legal framework to integrate these digital assets securely into its financial system. The government recently introduced a stablecoin bill, which requires stablecoins to be fully backed by high-liquidity assets, prohibits interest payments on stablecoin holdings to prevent shadow banking risks, and ensures consumer protections such as reserve asset segregation and timely redemptions.
Regulatory authorities like the Financial Services Commission (FSC) and the Bank of Korea will have oversight and emergency powers to maintain market stability. This initiative is part of a broader push by South Korea's government under President Lee Jae-myung to revive the crypto market. The plan includes legalizing crypto ETFs and stablecoins as regulated financial products, with expected infrastructure and investor protection standards to be implemented by late 2025.
Officials from crypto exchange Bithumb and fintech giant Viva Republica are reviewing a potential partnership for a future stablecoin business. If the Bithumb-Toss partnership materializes, it could rival a recent collaboration between Dunamu and NaverPay. Under the Dunamu-NaverPay collaboration, NaverPay is expected to lead development and issuance of won-pegged stablecoins, while Dunamu would oversee distribution and infrastructure.
Last month, fanC filed trademark applications for KRWIN and associated technologies with the Korean Intellectual Property Office. A wave of stablecoin-related trademark applications has been filed by local financial and fintech firms, signaling growing interest in the space.
Lee Dong-ho, representative of fanC, stated that KRWIN will establish itself as a leading private model driving future demand for won-denominated digital assets. Once officially launched, KRWIN is expected to be used across sectors such as payments, global remittances, and tourism.
Viva Republica, the fintech company behind Toss, initiated the talks and is in discussions with several companies, including Bithumb, for similar collaborations. As these partnerships take shape, South Korea's digital asset market is poised for significant growth and innovation in the coming years.
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- As South Korea's government works to integrate stablecoins into its financial system, the finance sector, encouraged by innovations like KRWIN, is expected to play a crucial role in technology advancements within the digital asset market.
- The potential partnership between Bithumb and Viva Republica represents a significant step in the intersection of finance, technology, and the stablecoin industry, positioning South Korea as a global hub for digital asset innovation.
