In South Korea, Tether and Circle, the world’s leading stablecoin issuers, are set to meet with executives of biggest banks this week, according to Local media reports.
According to Yonhap News Agency, officials from both companies will sit down with leaders from the country’s four major financial groups to discuss possible partnerships. Talks are expected to cover the issuance of Korean won-backed stablecoins as well as the distribution of U.S. dollar-backed stablecoins in South Korea.
Circle President Heath Tarbert is scheduled to meet Shinhan Financial Group CEO Jin Ok-dong and Hana Financial Group CEO Ham Young-joo on Friday. Ham will also hold a separate meeting with a Tether representative.
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Meanwhile, KB Financial Group’s chief digital and IT officer Lee Chang-kwon and Woori Bank President Jeong Jin-wan are expected to meet Tarbert at another time. These four institutions, recognized by the Financial Services Commission as South Korea’s “Big Four” banks, are considered systemically important to the domestic financial system.
South Korea Prepares Framework for Won-Backed Stablecoin
Earlier this month, reports indicated that South Korea is moving forward with plans to establish a regulatory framework for a won-backed stablecoin. The Financial Services Commission (FSC) is expected to present the bill under the second phase of the country’s Virtual Asset User Protection Act.
In July, shares of at least three major South Korean banks jumped after they filed trademarks linked to stablecoin products. Soon after, the banking arm of IT giant Kakao Corporation confirmed it “plans to participate” in the stablecoin market.
This policy shift comes after the Bank of Korea suspended its central bank digital currency (CBDC) pilot in late June. Instead of pursuing a digital won, regulators and financial institutions have chosen to prioritize stablecoins tied to the Korean won. Before this change, eight leading South Korean banks had been preparing to jointly issue a won-pegged stablecoin as early as next year.
The meetings in South Korea mark the latest round of high-level talks by Tether and Circle, coming as regulators worldwide push for clearer stablecoin rules.
Tether has also struck deals with foreign governments such as Guinea and Uzbekistan to explore blockchain use and peer-to-peer payments. In January, the company revealed plans to move its operations to El Salvador after a series of meetings between CEO Paolo Ardoino and President Nayib Bukele.
