Korean companies are joining the stablecoin race, with Upbit and Naver Pay becoming the latest entrants in the market.
South Korean firms are progressively capitalizing on the new regulatory clarity surrounding stablecoins.
Naver Pay, a fintech payment platform, and Upbit, the nation’s largest crypto exchange, partnered on Tuesday, June 1, to create a Korean won stablecoin.
On June 26, Naver Pay declared it would serve as the leader of a consortium of organizations that would introduce stablecoins guaranteed by the won.
The regulatory change in South Korea, which is expected to favor stablecoins shortly, contributes to this decision.
South Korea to introduce new stablecoin rules
Upbit and Naver Pay’s initiative coincides with the intensification of discussions regarding stablecoin regulations in South Korea.
On June 29, President Lee Jae-myung announced that companies would be permitted to issue stablecoins secured by the national currency.
The action has generated substantial interest in organizations associated with digital assets.
Numerous leading financial institutions, including Citibank Korea, Shinhan, Woori, and KB Kookmin, have collaborated on their stablecoin initiative.
The Democratic Party currently governs South Korea and has advocated for implementing government-backed won stablecoins since May.
It is worth noting that legislators rush to establish stablecoins before USD-based stablecoins extend their dominance.
They anticipate this will allow them to develop a degree of dominance in the global stablecoin market.
South Korea is one of the markets with some of the most significant levels of cryptocurrency adoption. According to a recent report, 27% of the population between the ages of 20 and 50 possess crypto assets, with 70% willing to acquire additional ones.
