South Korea’s Major Banks Court Tether and Circle Amid Looming Stablecoin Regulations

South Korea’s top financial institutions are preparing to step directly into the stablecoin market, as four of the country’s largest banks hold high-level talks with global issuers Tether and Circle. The meetings come just weeks before lawmakers are expected to introduce a regulatory framework that could reshape the country’s digital payments landscape.

Executives from Shinhan, Hana, KB, and Woori Financial Groups will meet with the stablecoin giants on August 21 and 22, according to local media reports. Circle’s president, Heath Tarbert, is set for back-to-back sessions with Shinhan CEO Jin Ok-dong, Hana CEO Ham Young-joo, and KB’s Chief Digital Innovation Officer Lee Chang-kwon. Woori Bank President Jeong Jin-wan is also slated to join discussions. Tether, meanwhile, will hold a separate meeting with Hana’s leadership.

The timing is critical. President Lee Jae Myung’s administration, which has taken a markedly pro-crypto stance, is preparing a bill that will formally regulate stablecoins in South Korea. Sources suggest the draft law, set for release by October, will establish rules for issuance, oversight, and integration with the domestic financial system.

For the government, the push is as much about sovereignty as innovation. Officials have expressed concern that dollar-pegged tokens such as Tether’s USDT and Circle’s USDC could overwhelm local markets, potentially undermining monetary stability. To preempt this, Lee pledged during his campaign to support the creation of a won-based stablecoin, providing a state-sanctioned alternative that could compete with foreign issuers.

Industry watchers note that South Korea is already one of the world’s most active crypto markets, with digital assets deeply embedded in retail trading culture. The arrival of regulated stablecoins could accelerate adoption across mainstream finance, particularly in payments and remittances, where transaction costs and speed remain key issues.

The banks’ interest signals a shift in strategy. Traditionally cautious toward digital assets, South Korea’s financial sector is now moving to secure a role in the country’s evolving crypto infrastructure. By aligning with Tether and Circle—issuers of the two most widely used stablecoins globally—these institutions may gain early leverage in a market likely to be reshaped by upcoming regulation.

Whether the meetings lead to formal partnerships remains to be seen. Still, the alignment of political will, regulatory preparation, and institutional engagement suggests that South Korea is positioning itself to become a central player in the next phase of stablecoin adoption.