Circle has announced that it does not intend to directly issue a won-backed stablecoin in Korea. Instead, it will pursue market entry through technology partnerships with domestic banks and fintech firms, favoring a consortium-led issuance model that aligns with Korea’s regulatory environment and financial system. The disclosure came during a private briefing in Seoul on the 13th.
The company’s chief executive stressed that regulatory regimes vary by country—Europe has passed laws permitting corporate issuers beyond banks, while Korea’s distinctive financial system and legal requirements suggest a locally focused model may be more suitable. Circle is closely watching the progress of Korea’s Digital Asset Basic Act (the two-stage framework) and is assessing the most appropriate structure for its activities, including reviewing proposed regulations on foreign stablecoin issuers.
In Korea, Circle positions itself as a technology provider rather than a direct issuer. The firm highlights its advanced stablecoin operation tech and on-chain integration capabilities, asserting that partnering with Korean firms seeking to on-chain their won payments presents a more viable path. To accelerate market penetration, Circle has signed collaboration agreements with leading domestic exchanges such as UpBit (Dunamu) and Bithumb, with aims to broaden USDC adoption and pursue additional technical cooperation.
Allaire also met with major local financial groups, including Shinhan, Hana, and KB, to discuss how stablecoins could streamline cross-border payments and what technical support would be required for won-stablecoin issuance. There was particular interest among financial institutions in real-world asset tokenization (RWA), reflecting a broader appetite for blockchain-enabled, asset-backed solutions.
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