The Korean mobile payment platform Naver Pay is partnering with Upbit, the Korean cryptocurrency exchange, to develop a Korean won-based stablecoin. Dunamu Inc., the operator of Upbit, confirmed on Tuesday that it will support Naver Pay’s entry into the stablecoin market, signaling a push to combine digital payments with blockchain technology.
With the initiative, both companies aim to explore blockchain-powered payment solutions. While specific details of the project have not been disclosed, the collaboration aims to create a stablecoin pegged to the Korean won, enabling secure and price-stable transactions in the digital ecosystem.
The two companies are expected to finalize their plans in line with South Korea’s upcoming regulations on digital assets. This will include key decisions such as the designation of a stablecoin issuer and the operational framework of the partnership. Naver Pay is set to lead the initiative, while Upbit, through its parent company Dunamu, will provide technological and infrastructure support to bring the stablecoin to market.
A Korean won-based stablecoin is a digital asset designed to maintain a one-to-one peg with the national currency. Unlike volatile cryptocurrencies, it serves as a stable medium of exchange and store of value, making it particularly suitable for payments and remittances. Industry experts note that such a token could accelerate the integration of blockchain into everyday financial transactions in South Korea.
Interest in stablecoin development is rising amid growing regulatory discussions both domestically and abroad. In the United States, lawmakers have been advancing legislation to establish clear guidelines for stablecoins, with the Senate recently passing the GENIUS Act. Similarly, South Korea is exploring its own legal framework. Lawmaker Min Byoung-dug of the Democratic Party has proposed the Digital Asset Basic Act, which includes provisions to oversee the issuance and circulation of won-pegged stablecoins.
Local fintech firms and commercial banks are already positioning themselves for this market. Companies have been rushing to secure trademarks for stablecoin-related products, aiming to gain an early foothold before large-scale issuance begins. This competitive landscape reflects the high expectations for stablecoins to reshape Korea’s payment and digital asset sectors.
Naver Pay first signaled its interest in the sector on June 26, when it announced plans to form a consortium for stablecoin development. Partnering with Upbit, the country’s dominant crypto exchange, aligns with its strategy to leverage blockchain technology for secure and scalable payment solutions. By combining Naver Pay’s massive user base with Upbit’s crypto expertise, the initiative aims to create a seamless link between traditional finance and digital assets.
The project also carries broader implications for Korea’s crypto market, which has historically been affected by the “kimchi premium”—a price gap between domestic and international crypto exchanges caused by capital flow restrictions. A tradable KRW stablecoin could reduce this disparity by enabling easier on-chain conversions to global stablecoins such as USDT or USDC, potentially increasing liquidity and reducing arbitrage opportunities.
Market interest in stablecoin-related assets has been surging. Data from the Korea Securities Depository shows that domestic investors purchased more than $754 million worth of shares in U.S.-listed stablecoin-related firms, including Circle and Coinbase, in June alone. This growing appetite underscores the potential demand for a domestic stablecoin, especially as South Korea moves to provide regulatory clarity and foster innovation in digital payments.
