BlockBeats News, June 25th. According to South Korea's Economy Chosun, the country's eight major commercial banks have joined forces to establish a Korean won-based stablecoin joint venture company. The initiative aims to compete against the USD-dominated global stablecoin market and actively seek dominance in the digital asset field.

The participating institutions include Kookmin Bank, Shinhan Bank, Woori Bank, Nonghyup Bank, KEB Hana Bank, Suhyup Bank, Citibank Korea, and Standard Chartered First Bank, totaling 8 banks. They are cooperating with the Open Blockchain and Decentralized Identity Association and the Korea Financial Settlement Service to prepare for the establishment of a "KRW-pegged stablecoin" joint venture company. This marks the first time South Korea's banking industry has entered the digital asset business in alliance form, seen as a signal of the private sector's formal response to the reality of digital assets.

Currently, the banks are discussing the development of a common infrastructure. It is expected that once the relevant legal framework is in place, the feasibility of establishing the joint venture company could be achieved as early as the end of this year or the beginning of next year. Regarding the stablecoin issuance model, it has not been finalized yet. Two options are being assessed from technical and legal perspectives: 1. Trust-based model: where customer funds are held in trust before token issuance; 2. Deposit-backed token model: issuing tokens pegged 1:1 to bank deposits.