Circle and Tether explore won-backed stablecoins in South Korea amid growing crypto regulations and partnerships with major banks and exchanges.
Top executives from Circle and Tether, the world’s two largest stablecoin issuers, are visiting South Korea this week. They are scheduled to meet with leaders from Korea’s four major financial groups—KB, Shinhan, Hana, and Woori. These meetings represent a significant step on the way to the introduction of won-backed stablecoins in the country.
Tether Hires Korean Manager to Boost Local Partnerships
USDC issuer Circle and USDT issuer Tether are eyeing to enter the Asian market. Their interest in South Korea is due to the fact that the government of the country is increasingly becoming accommodating towards crypto innovations. President Lee Jae Myung has already stated that he would develop a legal framework for the won-based stablecoins. His government has been keen on the development of digital finance and blockchain.
Related Reading: South Korea Plans Won-Backed Stablecoin Regulations | Live Bitcoin News
Stablecoins can be described as digital money that is usually pegged to a real-world currency (such as the U.S. dollar). Yet, the new talks revolve around stablecoins that would be pegged to the Korean won, and this would be the first time such giants of the global stablecoin issuers as Tether and Circle would do so.
During the visit, Heath Tarbert, President of Circle, has already started meeting with the largest banks of South Korea. Besides banks, he is also negotiating with the three biggest crypto exchanges in the country, which are Upbit, Bithumb, and Coinone. Circle is also discussing with Web3 venture capital firm Hashed and payment-related companies like Kakao, which has in the past shown interest in stablecoins and blockchain.
Meanwhile, Tether is making moves of its own. The firm has recently recruited a Korean expansion manager who will work on partnerships in the region. Although the details of its visit are not fully disclosed, Tether is believed to be meeting with Korean financial institutions and political figures behind the scenes. It is also expected that they will hold meetings with lawmakers, including Rep. Min Byoung-dug, who proposed the Digital Asset Basic Act.
Won-Backed Stablecoins Poised to Transform Korean Finance
The attention that international stablecoin issuers are giving is opportune. The high dependence on international trade in South Korea opens up a potential to implement stablecoins in cross-border settlements. KP Jang, Chief of Xangle Research, believes this demand might make Korea a major destination in regards to stablecoin adoption.
Korean firms with large U.S. dollar reserves can start to convert some of it to stablecoins. This might enable a more flexible financial activity and exposure to blockchain-based finance. This is yet another area that companies such as Tether and Circle are probably investigating, Jang said.
The companies hold regular meetings, showing their serious interest in the Korean market. Their actions suggest long-term plans for involvement. These talks happen as South Korea prepares to launch its stablecoin legal framework in October. The new law will create a safer and more regulated environment for adoption.
Finally, the entry of Circle and Tether leaders into Korea is an indication of a possible stablecoin revolution in the country. If successful, it could lead to the launch of won-backed stablecoins, setting the stage for Korea to become a global leader in digital currency innovation.
