Bank of Korea pushes bank-led won stablecoin amid Digital Asset Act delays
In brief
- Bank of Korea submitted materials to lawmakers calling for bank-led stablecoin issuance and statutory safeguards.
- Deposit token pilots are advancing, with expansion planned for H2 2025.
- Issuer disagreements have delayed South Korea's digital asset legislation.
Bank safeguards and issuer control
The Bank of Korea called for safeguards including priority issuance by bank-led consortiums and a statutory policy body to oversee stablecoin operations. The central bank also wants banks to retain majority ownership of stablecoin issuers, a position that has divided policymakers and industry groups in Seoul.
This stance has become a flashpoint. The disagreement over issuer rules is a core reason South Korea's Digital Asset Basic Act has stalled, with no consensus yet on whether stablecoin issuers should be bank-led. In April, the ruling Democratic Party proposed putting stablecoins and real-world assets under existing financial laws, but the broader framework remains unresolved.
Deposit tokens and CBDC momentum
While stablecoin rules languish, deposit tokens are gaining traction. Deposit tokens are digital tokens that represent commercial bank deposits, and the Bank of Korea plans to continue developing use cases in the second half of the year. The government is also moving forward: South Korea's Ministry of Economy and Finance announced a pilot to use tokenized deposits for government operational spending, signaling real-world deployment momentum.
In April, BOK Governor Hyun-Song Shin expressed support for deposit tokens and central bank digital currencies, suggesting the bank sees these tools as complementary to its stablecoin vision. The government initially aimed to finalize the Digital Asset Basic Act by the first quarter of 2026, though the timeline has slipped amid geopolitical tensions, local elections, and delays in reorganizing the Assembly's committee structure.
The outcome will shape South Korea's crypto ecosystem for years. If the central bank's bank-led model prevails, it could limit competition among issuers. If broader frameworks emerge, startups and fintech firms may gain footing alongside traditional banks.
