South Korean banks sneak into cryptocurrency: deposit tokens to go to public chains
Bank of Korea is planning to connect its own digital tokens to the wider crypto world. It hopes to connect central bank deposit tokens to the public blockchain network. This push can reshape how money moves in South Korea and beyond.
Public blockchain connection
According to Deputy Governor Lee Jong-Ryeol, the South Korean bank “is considering linking its deposit tokens to public blockchain systems. He calls the tokens “stable types” and backed by the central bank’s digital currency framework.
Lee made the remarks during a blockchain-leading club event on Tuesday. He saw banks, businesses and even individuals have the opportunity to use state-issued tokens on networks such as Ethereum or others.
Bank of Korea plans to integrate deposit tokens into public places #Blockchain network.
Lie Jong-Ryeol outlined the bank’s vision at a “Blockchain Leadership Club” event on Tuesday. pic.twitter.com/z2fnksegmx
– sachi (@sachi_gkp) May 27, 2025
Stablecoin outflow has attracted attention
According to the report, Stablecoins accounted for about 47% of South Korean cryptocurrency outflows in the first quarter. This equals nearly 27 trillion won ($19.1 billion).
Traders in Seoul often use USDT and USDC because their value is stable. Lee warned that relying on foreign stabilizers could damage WON’s role in global markets.
He said this could threaten monetary sovereignty, stimulate financial instability, and even help with money laundering.
As of today, the market cap of cryptocurrencies stood at $3.42 trillion. Chart: TradingView
Global stable market rises
Stablecoins are booming around the world. Their entire market value exceeds $230 billion in March 2025. As of this writing, Stablecoin’s total market value is slightly above $247 billion, up $35.37 billion last week.
These figures show the growth rate of private issuers. Lee pointed out that South Korea must take action before foreign coins rule local transactions.
Total stablecoin market value. Source: DefiLlama
Crypto industry and political push
Major exchanges such as Bithumb, Coinone and Korbit participated in Tuesday’s event with regulators. Their presence emphasizes the cryptocurrency company’s voice in the rules.
Meanwhile, opposition leader Lee Jae-Myung promised that if he wins the presidency, he would win the winning Stablecoin. He believes it can reduce crypto outflows of 5.68 million won ($40.8 billion) and make local transactions easier.
Other legislators, such as Min Byoung-Dug of the Democratic Party, said South Korea must “lead the stables who are institutionalized” and then before our pegggggging tokens take over.
Digital Won’s next step
Bank of Korea plans to conduct other tests this year. It will look at how to ensure the tokens are secure, maintain users’ privacy and comply with anti-money laundering regulations.
If these pilots go well, a corporate pilot can arrive until 2026. This means that there has been a huge change in the way South Korea’s currency works, which may lead other countries to follow suit.
Featured images of Bloomberg, charts of TradingView
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