Bank of Korea Proposes Bank-Led Won Stablecoin System to Mitigate Risks
Won stablecoins are digital tokens designed to maintain a fixed value against the South Korean won and can be used for payments and digital-asset trading. The Bank of Korea says issuance by private companies outside banking supervision could circumvent advance foreign-exchange reporting requirements, weaken monetary-policy transmission and threaten financial stability during a run. It therefore wants commercial banks subject to capital and governance requirements to take the lead initially.
In February 2026, the Bank of Korea submitted a report to the National Assembly’s Strategy and Finance Committee, renewing its proposal for a bank-led issuance consortium and a statutory interagency body to review and supervise issuers. Regulators have remained divided since November 25, 2025, over whether banks should be required to own a majority stake in issuing companies, delaying legislation originally slated to advance in October 2025. The latest report did not propose an issuance amount.
All Coverage
1 original reportsThe Backstory
The history behind this eventBank of Korea Advances Bank-Led Stablecoins and Deposit-Token Pilot
The Bank of Korea is taking an active role in shaping a framework for won-denominated stablecoins to protect financial stability and monetary sovereignty. It insists that stablecoins be issued by regulated banking consortiums rather than nonbank entities such as technology companies. That cautious position conflicts with calls from South Korea’s National Assembly and the financial industry for faster liberalization. The disagreement has kept the key Digital Asset Basic Act stalled, drawing intense domestic attention.
To advance tokenized finance, the central bank is expanding the second phase of its Hangang Project deposit-token pilot in the second half of 2026. The number of participating banks has risen to nine, while the holding limit for each wallet has increased sharply from 1 million won to 10 million won. The BOK also plans to raise the cap on participants to 500,000. In cooperation with the Ministry of Economy and Finance, the pilot will also test the tokenization of government operating expenditures in Sejong City in the fourth quarter of 2026.
Subscribe to Mark Radar Weekly
Every Friday, the week's strongest signals in your inbox. Unsubscribe anytime.
If you search news on Google, you can set Mark Radar as a preferred source—our coverage will show up more often in your results. Set as preferred source on Google →