South Korean Companies Rush into Stablecoin-Based Payments Amid Regulatory Delays
South Korean companies are accelerating their introduction of stablecoin-based payments despite the delay in implementing the Framework Act on Digital Assets.
Coupang and Woori Bank recently completed a real-time proof of concept (PoC) based on stablecoins, with Coupang stably implementing the process of transferring and settling payments through stablecoins to franchisees in various scenarios. Woori Bank supported the conversion of funds between stablecoins and fiat currencies by linking electronic wallets and bank accounts.
The technology foundation was implemented on the 'Tempo' environment, a layer 1 blockchain specialized in stablecoins. Tempo is a fintech startup in which Coupang participated as an early partner and investment company. Global payment companies such as Stripe, Visa, Mastercard, and Deutsche Bank are also working together as major partners.
Kakao Group, including Kakao, Kakao Pay, and Kakao Bank, signed a strategic business agreement with Circle to cooperate in the field of digital asset technology and blockchain-based payment infrastructure. They plan to utilize their experience in developing digital platform and financial service ecosystems on Circle's blockchain and global payment system.
Toss and Toss Bank also signed an MOU with Circle to review the possibility of cooperation in the field of payment and settlement infrastructure using stablecoin and blockchain technology. Hyundai Motor completed a demonstration of cross-border remittances using Tether (USDT) by its U.S. and Mexican subsidiaries, significantly reducing the time compared to existing banks.