Participating institutions include eight banks: Kookmin Bank, Shinhan Bank, Woori Bank, NongHyup Bank, Industrial Bank of Korea, Suhyup Bank, Citibank Korea, and Standard Chartered Korea. They are collaborating with the Open Blockchain and DID Association and the Korea Financial Telecommunications and Clearing Institute to prepare for the establishment of a joint venture company for a "won-pegged stablecoin." This marks the first time the South Korean banking industry has entered the digital asset business in a consortium format, and it is seen as a signal that the private sector is formally responding to the reality of digital assets.

Currently, the banks are discussing the construction of a common infrastructure, and it is expected that the feasibility of establishing the joint venture company will be realized as early as the end of this year or the beginning of next year after the relevant legal system is sorted out. Regarding the issuance model of the stablecoin, it has not yet been finalized, and two schemes are being evaluated from a technical and legal perspective: 1. Trust model: Custody customer funds before issuing tokens; 2. Deposit token model: Issue tokens pegged 1:1 to bank deposits. [BlockBeats]