South Korea accelerates won stablecoin pilots

South Korean banks and tech firms completed successful pilots of won-pegged stablecoin payment systems, achieving fast, policy-driven transactions. KT announced major investment in token and stablecoin infrastructure.

South Korean financial institutions and technology firms have completed several successful proof-of-concept trials for Korean won-pegged stablecoin payment and settlement systems. BNK Busan Bank, in partnership with AhnLab Blockchain Company, OpenAsset, Kaia, and Lambda256 under the K-STAR alliance, tested a blockchain-based infrastructure supporting the full lifecycle of digital local currencies, including issuance, circulation, payment, and settlement. The pilots, conducted on the Kaia blockchain, focused on programmable digital currency models with embedded spending rules and policy-driven features such as usage restrictions and expiration dates. The systems achieved a 100% transaction success rate and processed payments in under one second, even during peak traffic. Additionally, KT, a major telecommunications company, announced a significant investment to develop a Token Factory and won stablecoin platform, aiming to support token issuance, billing, and settlement using its network and partners. These initiatives highlight South Korea’s growing institutional interest in tokenized fiat infrastructure and the use of public blockchain networks for digital currency payments.