In a rapidly changing financial landscape, South Korea’s banking giants are making significant strides into the world of cryptocurrency and stablecoins. Major players like Shinhan, Woori, KEB Hana, and KB Kookmin are proactively establishing specialized teams to enhance their offerings in this dynamic sector.
Pioneering New Initiatives in Crypto
Recent news reports indicate that Woori Bank has initiated a Digital Asset Team as a part of its strategy to explore crypto custody solutions and the issuance of stablecoins. This proactive stance underscores the bank’s commitment to adapting to evolving digital asset needs.
The bank has ambitiously reignited a prior project aimed at forming a consortium with various blockchain companies to push for the issuance of won-pegged stablecoins by the end of the year.
KB Kookmin has also launched a Digital Asset Response Council, which aims to coordinate efforts across various financial sectors within KB Financial Group. This group’s focus is to quickly adapt to new regulatory changes and explore partnerships that can enhance their crypto strategy.
Innovative Strategies from Shinhan Bank
Shinhan Bank has mobilized a dedicated 20-member task force concentrated on establishing custody solutions, digital wallets, and token services. Meantime, KB Kookmin is fiercely protecting its future assets by applying for a staggering 32 trademarks associated with its planned stablecoins, alongside an additional 49 applications for other currency peg plans.
Back in 2018 and 2019, regulatory constraints were prevalent, with the government enacting stricter rules against ICOs. However, with the advent of a new administration under President Lee Jae-myung in 2025, the landscape looks promising, advocating for regulated crypto solutions.
Lawmakers are working on legislative frameworks to enable banks to issue stablecoins, provide custody services, and even operate digital exchanges, with significant discussions occurring in national assembly committees.
Emerging Players in the Crypto Scene
Beyond the major players, smaller institutions are also stepping up. K Bank, in partnership with Upbit exchange, has created its own digital asset division. Meanwhile, Busan Bank has established a blockchain research unit to explore the integration of distributed ledger technology within traditional finance.
These institutions are clearly cognizant of the path ahead, realizing that upcoming regulatory changes will necessitate advancements in their legacy systems to support on-chain transactions. The rise of competition from native crypto firms pushes them to act swiftly in laying the groundwork.
In South Korea, banks are not leaving anything to chance. By establishing focused teams, securing trademarks, and forging partnerships, they are not only preparing themselves for new regulations but also positioning themselves as leaders in the emerging digital asset ecosystem.
Image Credit to 1 Life on Earth; Chart Data from TradingView
