South Korea’s biggest banks are making a huge bet on cryptocurrency and stablecoins. They’re not waiting for regulations to be completely finalized; they’re building their crypto infrastructure now.
Banks Forming Crypto Teams
Several major players are creating dedicated teams to handle all things crypto:
- Woori Bank: Launched a Digital Asset Team focusing on crypto custody and planning to issue their own stablecoin. They’re even reviving an older crypto project and working with other companies to create a consortium for a won-backed stablecoin.
- KB Kookmin Bank: Established a Digital Asset Response Council to prepare for regulatory changes and collaborate with external partners. They’ve also cleverly applied for trademarks for stablecoins pegged to various currencies (including the Korean won). This is a smart move to secure their place in the market.
- Shinhan Bank:
Assembled a 20-person team to work on custody services, digital wallets, and token services.
Even smaller banks are getting involved: K Bank (linked to Upbit exchange) and Busan Bank have both created their own crypto-focused teams.
A Changing Regulatory Landscape
The Korean government’s stance on crypto has shifted. After a period of stricter regulations (including an ICO ban), the current administration is supporting regulated crypto innovation. Bills allowing banks to issue stablecoins, offer custody services, and operate digital exchanges are currently under review in the National Assembly. This is a huge opportunity for these banks.
Why the Rush?
The banks aren’t just jumping on the bandwagon; they’re strategically positioning themselves for the future. They know that:
- Their existing systems need upgrades to handle on-chain settlements.
- They face intense competition from established crypto companies.
By building their crypto capabilities now, they’ll be ready to compete effectively once the new regulations are in place. They’re aiming to be leaders, not followers, in the Korean crypto market.