South Korean cryptocurrency exchange Upbit is working with payments company Naver Pay to promote a won (KRW) stablecoin initiative, , citing an unidentified official from Dunamu, Upbit’s parent company.
The two companies are pursing a payments business based on the stablecoin, the official said, although details remain sparse. A stablecoin is a crypto token whose value is such as the dollar or gold.
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“We will specify the scope and methods of cooperation as soon as the relevant system is established,” the official told KBS.
Korea’s crypto-friendly president, elected at the beginning of June, has said he s a “won-based stablecoin market,” a stance that earlier this week spurred the Bank of Korea to roll out a central bank digital currency (CBDC).
A KRW stablecoin is likely to be an important event for local crypto traders, who have grappled with restrictions around moving KRW in and out of the country. That’s led to a large spread and arbitrage opportunities, the trade that his first notable wealth.
The spread between South Korean and U.S. exchanges has often been labeled as the The roll out of a KRW stablecoin, as long as it is tradable on-chain, would mean that traders can simply swap that stablecoin for USDT or USDC, bypassing fiat restrictions in the region and essentially ironing out any significant spreads in price.
