Financial groups race to partner with big tech for stablecoin edge

Major holding companies in Korea are racing to form partnerships with large tech firms, notably Naver, Kakao, and Samsung Electronics, to gain an edge in the fast-emerging stablecoin market, according to industry officials, Sunday. The move, undertaken by KB, Shinhan, Hana and Woori, comes as domestic stablecoin transaction volumes have already exceeded 60 trillion won ($41.15 billion), despite the market not yet being fully legalized. In response, financial regulators are preparing to submit a bill regulating stablecoins to the National Assembly by the end of 2025. Although discussions are ongoing, banks — the flagship business units of the holding groups — are viewed as viable options to serve as primary issuers of stablecoins pegged to the Korean won, either individually or through a joint consortium with related institutions. “Under these circumstances, alliances with big tech firms are considered essential, since it would take banks considerable time to develop the necessary technology on their own,” an industry official said. “Tech giants, on the other hand, already have