South Korea's largest bank files stablecoin trademarks for upcoming banking consortium

South Korea's largest banking institution, KB Kookmin, filed applications for stablecoin-related trademarks, in line with the country's ongoing efforts to establish legal grounds to promote local currency-pegged stablecoins.

According to the Korea Intellectual Property Rights Information Service (KIPRIS), KB filed 17 applications across Monday and Tuesday to trademark ticker symbols such as KBKRW, KRWKB, KBST, and KRWST.

The product classifications included software for use in virtual or digital currency and software for managing cryptocurrency transactions using blockchain technology.

Last week, KakaoPay, the country's leading mobile payment platform, applied to trademark six kinds of symbols similar to those filed by KB this week.

KB told local news outlet Aju Economic News that it made a preemptive move to secure the symbols as it is working to form a consortium with other banks to pursue the stablecoin business.

South Korea's eight leading banks, including KB, are preparing to launch a joint venture to issue a Korean won-based stablecoin, according to a report from Economic Review. The banking institutions involved are KB Kookmin, Shinhan, Woori, Nonghyup, IBK, Suhyup, Citi Korea, and Standard Chartered Korea. This includes four of the five largest banks in the country.

The banks are reportedly gearing up to form a consortium-like organization in collaboration with Open Blockchain and Decentralized Identifier Association (OBDIA), a local blockchain advocacy body, and the Korea Financial Telecommunications and Clearings Institute (KFTC), a non-profit that operates the country's interbank payment and settlement system.

The plan to launch the consortium is expected to materialize in late 2025 or early next year, in line with South Korea's ongoing legislative efforts around stablecoins.

Korean won-pegged stablecoins are rapidly gaining prominence as recently elected President Lee Jae Myung vowed to approve and promote such stablecoins in collaboration with the private sector.

Earlier this month, South Korean lawmaker Min Byeong-deok proposed legislation to fast-track the approval of Korean won stablecoins alongside Lee's other crypto promises.

In an interview with The Block, Min explained that the goal is to create an environment where private entities can issue won-pegged stablecoins and various industries — namely content creators, game developers, and e-commerce platforms — can actively utilize the tokens.

"This initiative is expected to yield several economic benefits such as reducing trade costs, diversifying foreign exchange risks, and increasing global investment into the local economy," Min said.