Hana Bank Files 16 Trademarks for Won-Based Stablecoins

Hana Bank, a prominent financial institution in South Korea, has recently filed 16 trademark applications for won-based stablecoins. This move aligns with other major banks in the country that are actively pursuing digital currency projects. Hana Bank is collaborating with several institutions and the Open Blockchain & Decentralized Identifier Association (OBDIA) to establish a joint venture aimed at issuing a stablecoin backed by the Korean won. This initiative highlights Hana Bank's role in expanding South Korea's digital money economy.

Prior to Hana Bank, KB Kookmin Bank had filed 17 trademark applications for won-linked stablecoins, including ticker symbols like KBKRW and KRWKB. These trademarks cover software related to blockchain and virtual currency transactions. KB Kookmin Bank plans to form a national stablecoin consortium with other major Korean banks to coordinate the issuance of won-backed stablecoins across the banking sector. Other banks involved in this joint venture include Shinhan Bank, Woori Bank, NongHyup Bank, Industrial Bank of Korea, Citi Korea, Standard Chartered Korea, and Suhyup Bank. These banks aim to create a regulated environment for stablecoin issuance, reflecting a growing interest in integrating stablecoins safely into the financial system.

The Bank of Korea (BOK) supports the cautious introduction of won stablecoins. Ryoo Sang-dai, BOK’s senior deputy governor, advocates for a gradual approach, initially limiting issuance to regulated commercial banks. This controlled method allows for the development of experience before expanding to non-bank sectors. Ryoo emphasizes the need for strong protection to safeguard users and market stability, given the potential impact of stablecoins on monetary policy and settlement mechanisms.

Political factors also play a significant role in the development of won stablecoins. President Lee Jae Myung and the Democratic Party are pushing for regulatory frameworks that permit won-backed stablecoins. Proposed laws aim to build infrastructure and prevent South Korea from falling behind in digital finance. The government views stablecoins as strategic for the country’s financial innovation future, adding momentum to stablecoin projects nationwide.

In addition to stablecoins, the Bank of Korea is advancing its central bank digital currency (CBDC) project. Since late 2023, the BOK has conducted CBDC pilot tests with the Bank for International Settlements. Ryoo Sang-dai confirmed plans for a second pilot phase involving major commercial banks. South Korea is exploring both public CBDCs and private stablecoins simultaneously, aiming to modernize the country’s financial system through various digital currency forms.

South Korean authorities are pursuing broader financial reforms due to the rise of digital currencies. These reforms include extending currency market trading hours and allowing more foreign investor participation. Accelerated market opening reforms aim to create a more dynamic financial market, aligning with global trends toward digital financial systems. Together, banks, regulators, and the government are working to integrate won stablecoins into South Korea’s financial infrastructure, reflecting a coordinated effort to stay ahead of global trends in digital finance.