Shinhan Bank has initiated a proof of concept (PoC) to introduce won-based stablecoin payment on its public delivery application 'Dai'. Although there is no law yet to regulate stablecoins in Korea, discussions about initial issuance through a regulatory sandbox are ongoing, which serves as a strategic move to quickly enter the business once related systems are in place. With the United States passing the 'Genius Act', the market is expected to expand rapidly, and competition for market dominance will intensify.
According to the financial industry on the 22nd, Shinhan Bank recently decided to pursue a PoC for stablecoin-based payment settlement.
PoC is a procedure to experiment and review the feasibility of technology or business models before full service implementation. It is a preliminary stage to assess the effectiveness and stability of new technologies.
Shinhan Bank is reviewing the possibility of issuing won-based stablecoins and using them for payment on its delivery app Dai once the issuance basis is secured. Dai has a solid user base with over 5.5 million subscribers. Internally, the bank sees high value in utilizing stablecoins to streamline local currency payment services provided through agreements with local governments.
Other commercial banks, including KB Kookmin Bank, are also reviewing PoC for stablecoin introduction. The Open Blockchain and DID Association (OBDIA), which is promoting joint stablecoin issuance among banks, has also begun developing detailed business plans.
Moreover, IT company NHN has been confirmed to be reviewing stablecoin settlement business. Currently, NHN KCP and NHN Payco are discussing stablecoins with blockchain companies. NHN is focusing on creating a system that settles multiple stablecoins from different issuers, aiming to become a hub for stablecoin settlement similar to value-added network (VAN) companies in existing card payment networks.
A financial industry official stated, "With the passage of the Genius Act in the United States and accelerated discussions including legislation in Korea, the financial sector is preparing for full-scale business" and added that "competition will become fierce in the future".
- Reporters Shin Jung-seop, Do Ye-ri
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