What happened with Shinhan Financial Group and South Korea’s stablecoin plans?

Shinhan Financial Group joined a coalition of major South Korean banks exploring a won-denominated stablecoin. The move creates a rival alliance to a separate consortium led by Hana Financial Group, highlighting growing competition in the country's digital currency sector.

What is a won-denominated stablecoin?

A won-denominated stablecoin is a digital token designed to maintain a 1:1 value with the South Korean won. The goal is to combine the speed and efficiency of blockchain-based payments with the price stability of a national currency.

Which banks are involved in the new stablecoin alliance?

The coalition includes Shinhan Financial Group, KB Financial Group, Toss, the Industrial Bank of Korea (IBK), BNK Financial Group and iM Bank. The group recently held a private digital asset meeting in Seoul to discuss potential stablecoin initiatives.

Why are South Korean banks racing to launch stablecoins?

Banks see stablecoins as both an opportunity and a defensive strategy. A successful stablecoin could modernise payments, lower transaction costs and help banks compete with crypto exchanges and technology companies that are expanding into financial services.

How does the Shinhan-led group differ from the Hana Financial consortium?

The new banking alliance is emerging as a competitor to a consortium led by Hana Financial Group that includes crypto exchange operator Dunamu and technology giant Naver. Industry officials suggest the split could create a "Hana versus the rest" dynamic within South Korea's financial sector.

Why does this competition matter for investors?

Competing stablecoin projects could accelerate innovation and investment in digital finance infrastructure. However, multiple competing standards could also create fragmentation, making it harder for platforms and users to interact seamlessly across different systems.

How could a won stablecoin benefit consumers?

A won-backed stablecoin could enable faster payments, cheaper remittances and more efficient cross-border transactions. It could also support new digital financial products that operate around the clock on blockchain networks.

Is this related to South Korea’s central bank digital currency (CBDC) project?

The stablecoin discussions align with broader digital currency developments in South Korea, including research by the Bank of Korea into a CBDC. However, the private-sector stablecoin initiatives are currently being developed independently of the central bank's project.

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Shinhan joins banks in won stablecoin push

Written by Brie CarterPublished Jun. 2 2026Last Updated Jun. 2 2026

Shinhan Financial Group has joined a coalition of major South Korean banks exploring a won-denominated stablecoin, intensifying competition over the future of digital payments in the country.

The group, which includes KB Financial, Toss, Industrial Bank of Korea, BNK Financial and iM Bank, recently held a private digital asset meeting in Seoul to discuss the initiative.

“Hana’s leading role in that project has made it difficult for other large banking groups to get involved,”

A high-ranking financial official told Seoul Economic Daily.

The new alliance is widely viewed as a response to a separate consortium led by Hana Financial Group that includes technology partners Dunamu and Naver, creating what some industry observers describe as a “Hana versus the rest” dynamic.

A won-denominated stablecoin would be pegged one-to-one with the South Korean won and could enable faster and cheaper transactions while maintaining price stability.

The project represents both an effort by banks to modernise payment infrastructure and a defensive move against the growing influence of crypto exchanges and technology firms in financial services.

South Korea’s Financial Services Commission is expected to introduce a stablecoin regulatory framework by late 2025, with competing industry proposals likely to influence the final rules while raising questions about interoperability and market stability.