Tether and Circle Push for Won-Backed Stablecoins in South Korea Amid Regulatory Progress

Circle and Tether, the world’s two largest stablecoin issuers, are exploring opportunities to launch won-backed stablecoins in South Korea, a country that has shown increasing openness to digital finance and blockchain innovation. Top executives from both firms are currently in the country, meeting with leaders from the nation’s four major financial groups—KB, Shinhan, Hana, and Woori—as part of a broader effort to establish partnerships and discuss potential market entry. These meetings represent a critical step toward the possible introduction of stablecoins pegged to the Korean won, a first for both companies in this market [5].

During the visit, Circle President Heath Tarbert has already met with executives from major banks and is also engaging with the country's top three cryptocurrency exchanges—Upbit, Bithumb, and Coinone—as well as Web3 venture capital firm Hashed and payment companies like Kakao, which has shown past interest in stablecoin technology [5]. Tether is also actively pursuing partnerships in the region, having recently appointed a local expansion manager to facilitate its growing presence in South Korea. The firm is reportedly meeting with key financial institutions and political figures behind the scenes, including Rep. Min Byoung-dug, a leading advocate of the Digital Asset Basic Act [5].

South Korea's government has signaled its support for the development of a regulatory framework for won-backed stablecoins, with the Financial Services Commission (FSC) planning to introduce dedicated legislation in October as part of the second phase of the Virtual Asset User Protection Act. This proposed law will establish clear rules for issuance, collateral backing, and internal controls, creating a safer and more regulated environment for stablecoin adoption [2]. The government's proactive stance has been reinforced by political leaders, including President Lee Jae Myung, who has consistently supported the growth of a stablecoin ecosystem tied to the national currency [5].

The potential introduction of won-backed stablecoins is seen as a strategic move for South Korea, given its high volume of international trade. Experts suggest that stablecoins could play a significant role in cross-border settlements, offering a more efficient and transparent alternative to traditional financial systems. Additionally, Korean firms with large U.S. dollar reserves may begin converting some of these funds into stablecoins, allowing for greater flexibility and exposure to blockchain-based finance [5].

However, the Bank of Korea has expressed caution regarding the risks associated with private-sector stablecoins. Concerns include the potential for increased demand for dollar-pegged tokens, which could complicate foreign exchange management and capital controls. The central bank has not ruled out the development of won-backed stablecoins but has emphasized the need for a carefully structured regulatory framework to mitigate broader economic risks [6].

Both Tether and Circle have demonstrated a consistent strategy of engaging with institutional partners and regulators in key markets. Tether has previously collaborated with governments in Uzbekistan and Guinea, while Circle has participated in major U.S. government forums to influence stablecoin legislation. These efforts reflect a broader ambition to scale stablecoin adoption in markets with strong crypto communities and evolving regulatory environments [7].

As discussions continue between the stablecoin issuers and South Korean financial institutions, the potential for the country to become a significant hub for stablecoin innovation is growing. The inclusion of systemically important banks in these talks adds credibility to the ongoing efforts to integrate stablecoins into the country’s financial infrastructure, potentially enabling services such as custody, issuance, and cross-border payments [3].

The development of a regulatory environment that supports stablecoin innovation positions South Korea as a key player in the global digital currency landscape. With strong institutional interest and a government committed to fostering blockchain-based financial tools, the stage is set for a significant expansion of stablecoin use in the country [8].

Source:

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

[2] Tether, Circle to Meet South Korea's Top Banking CEOs as..., Yahoo Finance, [https://finance.yahoo.com/news/tether-circle-meet-south-korea-120404706.html](https://finance.yahoo.com/news/tether-circle-meet-south-korea-120404706.html)

[3] Tether and Circle Engage with South Korean Banks Amid..., Binance, [https://www.binance.com/en/square/post/08-21-2025-tether-and-circle-engage-with-south-korean-banks-amid-regulatory-developments-286179****2329](https://www.binance.com/en/square/post/08-21-2025-tether-and-circle-engage-with-south-korean-banks-amid-regulatory-developments-286179****2329)

[4] South Korea Accelerates Won Stablecoin Adoption with..., CoinCentral, [https://coincentral.com/south-korea-accelerates-won-stablecoin-adoption-with-fsc-bill-announcement/](https://coincentral.com/south-korea-accelerates-won-stablecoin-adoption-with-fsc-bill-announcement/)

[5] Circle and Tether Explore Won-Backed Stablecoins in..., Live Bitcoin News, [https://www.livebitcoinnews.com/circle-and-tether-explore-won-backed-stablecoins-in-south-korea/](https://www.livebitcoinnews.com/circle-and-tether-explore-won-backed-stablecoins-in-south-korea/)

[6] Tether and Circle to meet South Korea’s Big Four Banks..., Bitcoin Insider, [https://www.bitcoininsider.org/article/283847/tether-and-circle-meet-south-koreas-big-four-banks-over-stablecoins](https://www.bitcoininsider.org/article/283847/tether-and-circle-meet-south-koreas-big-four-banks-over-stablecoins)

[7] Tether, Circle to Meet South Korea's Top Bank..., CoinStats, [https://coinstats.app/news/bb34f4b3f278e10d942a4e5981fa1fa3669b06d2620f88ccdfe3da556afae63b_Tether-Circle-to-Meet-South-Koreas-Top-Banking-CEOs-as-Stablecoin-Momentum-Mounts](https://coinstats.app/news/bb34f4b3f278e10d942a4e5981fa1fa3669b06d2620f88ccdfe3da556afae63b_Tether-Circle-to-Meet-South-Koreas-Top-Banking-CEOs-as-Stablecoin-Momentum-Mounts)

[8] afv global - Stablecoin Power Moves in South Korea, X · afvglobal, [https://x.com/afvglobal/status/1958536633990402348](https://x.com/afvglobal/status/1958536633990402348)