South Korean Banks Stocks Surge 10% to 20% After Stablecoin Filings

Shares of major South Korean banks surged following trademark filings for stablecoins, signaling growing institutional interest in digital assets. The market reaction suggests investor optimism around the banks’ potential entry into the cryptocurrency sector.

At least three South Korean banks that recently applied for Korean won stablecoin trademarks saw stock prices increase by 10% to nearly 20%. The filings come shortly after the inauguration of the country’s 21st president, Lee Jae‑myung, on June 4. His campaign included crypto-friendly promises, including the development of a Korean won-pegged stablecoin.

Kakao Bank filed for stablecoin-related trademarks on June 23. A day later, its stock price jumped to 37,000 won from 31,000 won, a 19.3% increase. Kakao Bank’s stock prices after the stablecoin application.

Kookmin Bank, a subsidiary of KB Financial Group, also filed for stablecoin-related trademarks on June 23. Its stock price climbed to 112,300 won on June 24, a 4.3% increase from 107,600 won before the filing. However, its stock price has continued to rise since the filing. At the time of writing, Kookmin Bank shares traded at 122,000 won, up 13.38% since it filed for stablecoin trademarks.

On June 27, the Industrial Bank of Korea also filed for stablecoin trademarks, causing an uptick in its shares. The bank’s stock currently trades at 20,150 won, up 10.1% since its filing when it traded at 18,300 won.

Other major banks in the country have also expressed their desire to team up and launch a stablecoin pegged to the country’s currency.

Despite the lack of clear rules, banks have been jumping into the stablecoin hype, benefiting from increased stock prices after filing stablecoin-related trademarks. The researcher added that despite banks rushing to capitalize on the momentum, South Korea lacks clear regulatory guidance on stablecoins, creating uncertainty around long-term viability.

BNK Financial Group, along with its affiliates Busan Bank and Kyongnam Bank, have taken proactive steps by applying for trademark rights related to Korean Won (KRW) stablecoins. This move is seen as a strategic initiative to capitalize on the burgeoning interest in digital currencies and to position themselves at the forefront of financial innovation. The involvement of these banks in the stablecoin market signals a broader trend within the South Korean financial sector, where traditional banking institutions are increasingly exploring the potential of blockchain technology and cryptocurrencies.

The filing of these trademarks is not just a symbolic gesture but a concrete step towards integrating stablecoins into the mainstream financial ecosystem. Stablecoins offer a stable store of value and a medium of exchange, making them attractive for both institutional investors and retail users. By securing trademark rights, these banks are laying the groundwork for future products and services that could leverage the stability and transparency of stablecoins.

The surge in stock prices of these banks can be attributed to investor confidence in their strategic foresight and ability to adapt to the evolving financial landscape. The move to trademark stablecoins is seen as a forward-thinking strategy that could potentially open new revenue streams and enhance their competitive edge in the market. This development also reflects the growing acceptance of cryptocurrencies within the traditional financial sector, as more institutions recognize the potential benefits of digital assets.

The proactive engagement of BNK Financial Group and its affiliates in the stablecoin market is a pivotal moment for the South Korean financial industry. It demonstrates a commitment to innovation and a willingness to embrace new technologies that could reshape the future of finance. As the regulatory environment for cryptocurrencies continues to evolve, these banks are positioning themselves to be leaders in the stablecoin space, potentially setting a precedent for other financial institutions to follow.