South Korea's first Korean victory Stablecoin was recently launched in a test run by Fanc in collaboration with financial software company Initech. Is this the beginning of Korea's Stablecoin bid?
summary
- Fanc and Initech have launched their first Korean winning Stablecoin pilot.
- South Korea's major fintech and crypto-related companies became the first to reveal the first Korean winning stubcoin.
On August 5th, Fanc and Initech announced “Krwin.” This was fixed at a 1:1 ratio with the first Stablecoin victory in Korea. This is the first time a private company has issued a WON-based digital asset nationwide. As reported by the Korean Herald, the pilot is designed to test Krwin's technical feasibility, including transferability and real-world applications.
Although the official release date for Stablecoin has not been announced, the report states that WON-based tokens will be distributed to a variety of sectors, including payment companies, global remittances, tourism and more.
For now, token circulation is limited to internal groups consisting of FANC and entities belonging to Initech.
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Fanc spokesman Lee Dong-Ho said the test issuance of Stablecoin, backed by South Korean winners, is a major milestone in moving forward with the adoption of stubcoin in the country. The test is said to combine financial security with blockchain technology.
“Kruwin will establish itself as a major private model that will drive future demand for winning digital assets,” Lee said in a statement.
Just a month ago, FANC had already applied for trademarks related to technology with Krwin and its Korean intellectual property offices, indicating that the company is already preparing Stablecoin for future public launches.
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Korea's first victory stub coin race
Following the ongoing global stubcoin race, major South Korean financial institutions have been keeping an eye on the potential of South Korea's winning stubcoin. The race was spurred by comments from newly elected President Lee Jae Myung.
His commitment to supporting assets supported by South Korean winners has sparked interest among retail investors in companies related to digital currency projects to pivot into Stablecoin Business.
In addition to Funk and Initik, officials at Crypto Exchange Bithumb and Fintech's Viva Republica said they are currently in discussions to establish a partnership for the Stablecoin business, according to the Korean Herald.
Not only that, Korea's largest crypto exchange, Upbit, and FinTech payment platform Naverpay are also partnering to issue Stablecoins backed by domestic currency. However, recent details have not been revealed.
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Resistance from the Bank of Korea
In mid-May, the South Korean central bank issued a statement that it should be empowered to monitor the approval of WON-based Stablecoins. In previous reports, authorities have expressed concern over stubcoins, which are being used as fiat currency.
According to the Bank of Korea, if not regulated correctly, if settlers are treated like fiat currency, it could disrupt regular policy. Therefore, it must be under the supervision of Bok.
South Korea's growing interest in the winning stubcoin is not surprising given that the population is already on track to USD-backed stubcoin. As crypto.news previously reported, Democrats revealed that stubcoins make up almost half of the money as users move their funds into overseas exchanges.
At the time, South Korea's cryptocurrency leaks reached almost 57 trillion won in the first quarter of 2025.
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