KB Kookmin Bank Files 17 Trademarks for Stablecoin Consortium

South Korea’s largest banking institution, KB Kookmin Bank, has taken a significant step towards the establishment of a national stablecoin consortium by filing 17 trademark applications related to stablecoins. This move is part of a broader effort by the country’s leading financial institutions to launch Korean won-pegged stablecoins. The trademark filings, submitted to the Korea Intellectual Property Rights Information Services, include proposed ticker symbols such as KBKRW, KRWKB, KBST, and KRWST. These trademarks cover product classifications involving software for virtual currency use and blockchain-based cryptocurrency transaction management.

A spokesperson for KB Kookmin confirmed that these filings are a proactive effort to secure digital currency identifiers as the bank collaborates with other financial institutions to establish a consortium. KB Kookmin is one of eight major South Korean banks preparing to form a joint venture dedicated to the issuance of stablecoins. The participating banks include KB Kookmin Bank, Shinhan Bank, Woori Bank, NongHyup Bank, Industrial Bank of Korea (IBK), Suhyup Bank, Citi Korea, and Standard Chartered Korea. These institutions are coordinating their efforts with the Open Blockchain and Decentralized Identifier Association (OBDIA) and the Korea Financial Telecommunications and Clearings Institute (KFTC), a nonprofit organization responsible for South Korea’s interbank payment infrastructure.

The consortium is expected to launch by the end of 2025 or the beginning of 2026, aligning with South Korea’s continuous stablecoin-related legislative initiatives. This surge in activity follows political signals of support from the country’s newly elected president, who has pledged to promote and approve stablecoin initiatives in collaboration with the private sector. At the beginning of the month, lawmaker introduced a bill aimed at fast-tracking the approval of Korean won-based stablecoins, emphasizing the importance of enabling private entities to issue stablecoins that could be actively utilized by various industries, including gaming, e-commerce, and content creation.

The consortium’s formation is seen as a strategic move to maintain leadership in the financial sector amidst growing global interest in stablecoins. The Bank of Korea has given its approval for the consortium, with the primary condition being the implementation of foreign exchange controls. This move marks the first time the central bank has shown support for a stablecoin initiative in the country. The consortium’s plans include filing trademarks for the stablecoin, with KB Kookmin Bank already taking preemptive steps by filing several trademarks in anticipation of the consortium’s launch.

The stablecoin consortium is expected to bring stability and trust to the digital currency market in South Korea. By pegging the stablecoin to the Korean won, the consortium aims to provide a reliable and secure digital asset that can be used for various financial transactions. The trust-based model will rely on the reputation and financial stability of the participating banks, while the deposit-linked model will be backed by actual deposits held by the banks. The consortium’s move towards issuing a won-backed stablecoin is a strategic response to the growing demand for digital currencies and the need for stable and reliable financial instruments. By taking a proactive approach, the banks are positioning themselves as leaders in the digital currency space and ensuring that they remain competitive in the rapidly evolving financial market. The stablecoin initiative is a testament to the banks' forward-thinking approach and their commitment to driving innovation in the financial sector.