The Bank of Korea supports bank-led stablecoins, and the deposit token pilot is steadily advancing

The Bank of Korea reiterated that the issuance of stablecoins should be led by banks, and the deposit token pilot is being advanced simultaneously.

The Bank of Korea (BOK) reconfirmed that won-denominated stablecoins should be issued through bank-led consortiums, and urged more safeguards as lawmakers continue to discuss South Korea\'s digital asset regulatory framework. In a submission to the Parliamentary Finance Committee on Thursday, the Bank of Korea pushed for a bank-centered issuance structure rather than allowing a wider range of non-bank institutions to participate.

Measures highlighted by the Bank of Korea include priority issuance through a bank-led consortium and the establishment of a statutory policy body involving relevant government agencies.

Core Points

The Bank of Korea reiterated its preference that Korean won stablecoin issuance should be bank-led, with consortium structures as core safeguards. This position is expected to continue to put pressure on the formulation of the Basic Law on Digital Assets, which has been repeatedly postponed due to differences between the parties on the issue of the issuer of stablecoins. The Bank of Korea also said that it will continue to promote the development of deposit token application scenarios in the second half of the year, including government payment and daily payment scenarios. Discussions on South Korea\'s stablecoin policy are still pending. Due to the overall political and regional situation, the timetable for advancing the bill has been delayed.

Why a bank-led stance is crucial to South Korea\'s stablecoin rules

The Bank of Korea\'s latest statement is a continuation of its months of insistence on incorporating the issuance of Korean won stablecoins into a bank-led mechanism. Previous reports pointed out that the central bank has been promoting the establishment of a framework that would allow banks to have dominant ownership or control among stablecoin issuers. This stance has led to divisions between policymakers and industry groups and has become one of the factors hindering the progress of South Korea\'s Basic Law on Digital Assets. At the heart of the controversy is a question closely watched by investors and market participants: whether stablecoins should be seen as an extension of regulated banking or as a more open category of financial infrastructure that allows more companies to participate. A bank-led consortium model could strengthen supervision, but it could also limit participation and slow the entry of new issuers and business models into the market.

Deposit tokens are back in the spotlight

In addition to stablecoins, the Bank of Korea also said it plans to continue to develop application scenarios for deposit tokens in the second half of the year. According to local reports, these efforts include supporting government subsidy payments, vouchers, electric vehicle charging infrastructure, and more real-world transaction scenarios for the public. Deposit tokens are digital tokens that represent commercial bank deposits. The Bank of Korea\'s focus is consistent with the broader direction observed in recent months: using tokenized deposits as a controllable path for tokenized payments, while maintaining core infrastructure under the control of regulated banks. In April this year, South Korea\'s central bank governor Lee Chang-yong publicly supported deposit tokens and central bank digital currencies in his first public speech. The South Korean Ministry of Economy and Finance also announced a pilot program for tokenized deposits related to government operating expenditures. By linking next steps to specific payment and voucher scenarios, the Bank of Korea has effectively combined its stablecoin governance stance with a pragmatic near-term tokenization roadmap that can be tested in the real economy.

Basic Law on Digital Assets: Outstanding issuance issues continue to hinder progress

The central bank\'s reiteration comes as lawmakers are still debating how to incorporate stablecoins, tokenized real-world assets and other digital assets into South Korea\'s financial regulatory system. Previous differences over the issuance of stablecoins, especially on who should be allowed to issue stablecoins, have kept discussions on the bill active rather than moving towards integration. It has been previously reported that the bill has been repeatedly blocked due to related issues such as whether stablecoins should be dominated by banks and the ownership structure of stablecoins issuing institutions. Local reports show that the central bank continues to advocate that banks occupy a majority position in the stablecoin issuance structure. At the same time, lawmakers continue to consider how to include these assets in existing legal classifications. In April, South Korea\'s ruling Common Democratic Party proposed bringing stablecoins and tokenized real-world assets into the jurisdiction of existing financial laws, but the core issue of bank-led issuance remains unresolved-indicating that classification alone may not solve the governance model problem. One reason why this process is particularly difficult is that policy decisions on stablecoins are now intertwined with broader digital asset priorities: tokenization of real-world assets, deposit token pilots, and fundamental issues such as the extent to which tokenization should extend in regulated financial services.

Time Pressure and Political Resistance

In January this year, the South Korean government told President Lee Jae-myung that it would strive to complete the legislative goal by the first quarter of 2026. But the timetable has since been delayed due to local reports, including delays related to the U.S. -Israeli war against Iran that began in late February, the domestic election cycle, and the reorganization of congressional committees. These distractions are important because they affect how quickly different options-the Bank of Korea\'s preferred bank-led model and the broader industry participation model-can be integrated into a single bill text. The longer the standoff lasts, the greater the uncertainty market participants will face about licensing issues, issuer ownership rules, and compliance requirements for any future Korean won stablecoin issuance.

For readers who are concerned about the transformation of South Korea\'s digital assets, the Bank of Korea\'s actions send a clear signal: Even if negotiations continue, the central bank seems reluctant to abandon bank-led safeguards. At the same time, its continued emphasis on the deposit token pilot shows that the central bank views tokenization of bank deposits as a more direct, feasible and controllable transition step. Looking ahead, investors and builders should pay attention to whether congressional committee deliberations will converge to the Bank of Korea\'s bank-led issuance model, or whether lawmakers will make room for other issuer structures. Equally important is how work on deposit token application scenarios promised in the second half of the year will move forward, as real-world pilot projects may shape the scope regulators can ultimately tolerate in the stablecoin ecosystem.