Bank of Korea Holds Bank-Led Stablecoin Line as Token Pilots Move Ahead

The Bank of Korea has reiterated its call for won-denominated stablecoins to be issued under a bank-led framework, even as deposit token pilots continue to advance in South Korea. The central bank’s position comes as lawmakers and regulators continue working through issuer requirements in the country’s digital asset bill.

The development matters because stablecoin rules can shape how banks, crypto firms and payment providers participate in South Korea’s digital asset market. By favoring bank-led issuance, the Bank of Korea is signaling that it wants regulated financial institutions to play a central role in any won stablecoin system.

Deposit token pilots add another layer to the policy discussion. These projects give authorities and financial institutions a way to test tokenized forms of bank deposits while broader rules for private stablecoin issuers remain unresolved.

Issuer eligibility remains the key sticking point. The debate is not only about whether won-based digital tokens should be allowed, but also about which entities should be trusted to issue them and under what safeguards.

For the crypto ecosystem, South Korea’s approach will be closely watched because it may define the balance between innovation and bank-centered oversight. For now, the Bank of Korea’s message is clear: stablecoin development should move forward with banks at the core.