South Korean Banks Meet Tether and Circle to Explore Stablecoin Collaboration

Tether and Circle, two of the largest stablecoin issuers globally, are set to hold high-level discussions with executives from South Korea’s top four financial institutions, including Shinhan, Hana, KB, and Woori. The meetings, scheduled for late August, aim to explore potential collaborations around stablecoin issuance and distribution, covering both Korean won-backed and U.S. dollar-backed tokens [1][2]. These talks come as South Korea prepares for significant regulatory changes to accommodate the growing influence of stablecoins in its financial system [3].

According to local media reports, Shinhan Financial Group CEO Jin Ok-dong and Hana Financial Group CEO Ham Young-joo will meet with Circle’s President Heath Tarbert separately on Friday. Ham is also expected to meet with a representative from Tether later in the day. KB Financial Group’s CDIO, Lee Chang-kwon, and Woori Bank President Jeong Jin-wan are also scheduled to meet with Circle leadership, though specific details remain undisclosed [1][2]. This engagement highlights the increasing interest among traditional financial institutions in leveraging stablecoin technology to enhance cross-border payment efficiency and liquidity management [1][3].

The meetings are occurring amid a broader legislative push led by South Korea’s pro-crypto administration under President Lee Jae Myung, who has pledged to develop a domestic won-based stablecoin market. Regulatory drafts are currently being prepared by South Korea’s top financial authorities, with the aim of formalizing rules for stablecoin issuance and management by October [4]. The government’s proactive approach reflects concerns over the potential dominance of foreign-denominated stablecoins, such as USDT and USDC, in local markets [3].

Analysts note that the discussions could pave the way for domestic banks to issue their own stablecoins, providing new tools for international trade and cross-border transactions while reducing dependency on traditional banking infrastructure [2]. However, such developments will need to be carefully balanced with regulatory safeguards to address concerns around financial stability and consumer protection [3]. The meetings also signal South Korea’s ambition to play a leading role in shaping the global regulatory landscape for stablecoins [1][3].

The engagement between Tether, Circle, and South Korean banks reflects a broader trend of institutional adoption of digital assets, with traditional finance increasingly intersecting with crypto markets. As discussions progress, the outcomes could influence not only South Korea’s domestic financial ecosystem but also the global trajectory of stablecoin usage. For now, the focus remains on building regulatory clarity and fostering trust among key stakeholders in the evolving digital currency landscape [2][3].

Source: [1] Tether, Circle to meet top South Korean Bank execs: Report (https://cointelegraph.com/news/tether-and-circle-to-meet-top-south-korean-bank-ceos-report)

[2] Tether and Circle to meet South Korea's top banks on ... (https://crypto.news/tether-and-circle-to-meet-south-koreas-top-banks-on-stablecoin-adoption/)

[3] Tether and Circle Engage with South Korean Banks Amid ... (https://www.binance.com/en/square/post/286179****2329)

[4] BOK flags stablecoin risks ahead of Circle president's visit (https://www.kedglobal.com/cryptocurrencies/newsView/ked202508200003)