DWF Ventures sees high potential for Korean Won stablecoin

DWF Ventures, the venture arm of DWF Labs, said in a report that it has high expectations for the introduction of a Korean Won-based stablecoin. The report notes that South Korea has a suitable environment for stablecoin proliferation, with approximately 18 million people holding digital assets and 98% of the population using digital payments. A won-denominated stablecoin is expected to reduce reliance on U.S. dollar-based stablecoins, mitigate capital outflows, increase the transparency of fund flows, and strengthen controls over illicit transactions. It could also contribute to creating new revenue streams through reserve management and improving capital efficiency in financial markets. Major stablecoin issuers like Circle and Tether are already exploring market entry through discussions with companies such as Naver and Kaia. However, the report identifies regulatory uncertainty over the issuance structure as a major obstacle. The Bank of Korea favors a bank-led consortium model, while discussions are also ongoing about a regulatory sandbox to expand private sector participation. DWF Ventures analyzed that competition in the space is expected to intensify following the passage of the Digital Asset Basic Act (DABA).