Crypto News: South Korea’s Biggest Banks in Talks With Tether and Circle on Stablecoin Partnerships

Key PointsExecutives from Shinhan, Hana, KB Financial, and Woori Bank to meet with Tether (USDT) and Circle (USDC).Discussions cover distribution of dollar-pegged stablecoins and potential launch of a won-based stablecoin.Aligns with President Lee Jae Myung’s pro-crypto agenda and shift away from a central bank digital currency (CBDC).Meetings scheduled with Circle President Heath Tarbert and Tether officials this week.South Korea Banks Eye Stablecoin PartnershipsSouth Korea’s top financial groups are preparing direct talks with Tether and Circle, issuers of the world’s two largest stablecoins, to explore partnerships, according to Yonhap News.Executives from Shinhan Bank, Hana Bank, KB Financial Group, and Woori Bank are expected to hold separate meetings to discuss distributing dollar-pegged stablecoins (USDT, USDC) in South Korea and potentially issuing a won-pegged stablecoin.The move reflects South Korea’s broader push to position itself as a stablecoin hub in Asia, following the government’s decision to shelve central bank digital currency (CBDC) plans earlier this year.Political and Regulatory ContextPresident Lee Jae Myung, elected in June, has prioritized developing a stablecoin market as part of his crypto-friendly campaign promises. His administration views stablecoins as a practical alternative to a state-issued CBDC, aiming to foster private-sector innovation while maintaining oversight.The Bank of Korea suspended its CBDC project shortly after Lee’s victory. Meanwhile, Upbit, one of South Korea’s largest exchanges, has already announced a stablecoin project with Naver Pay, signaling growing domestic momentum.Who’s Meeting WhomShinhan CEO Jin Ok-dong and Hana CEO Ham Young-joo will meet Circle President Heath Tarbert on Friday.Ham is also expected to meet with a Tether representative later the same day.KB Financial’s Chief Digital & IT Officer Lee Chang-kwon and Woori Bank President Jeong Jin-wan are arranging similar talks with Circle.Circle’s USDC is currently the second-largest stablecoin after Tether’s USDT, both of which dominate global markets, according to CoinDesk.