Samsung's Executive Envisions Integration of Won-Pegged Stablecoins into Wallet as Regulations Emerge

Introduction

During a recent seminar in Seoul, a senior executive from Samsung Global Research has hinted at the possibility of introducing a stablecoin pegged to the Korean won into Samsung Wallet, coinciding with South Korea's upcoming regulations pertaining to digital assets. Park Hyun-soo, who holds the position of managing director at Samsung Global Research, shared these insights on November 5 at a policy event celebrating the release of The Future of Money, the Stablecoin Revolution.

Current Developments

Park highlighted that Samsung's current stablecoin operations in the United States could serve as a beneficial model for similar innovations in South Korea, contingent on the development of a regulatory framework that would accommodate won-backed stablecoins. He remarked,

"In the U.S., Samsung Wallet users can manage dollar-pegged stablecoins, and we have recently enabled transfers across 60 nations."

He proposed that a version of this service could be replicated in South Korea with the launch of a won-supported stablecoin, giving users streamlined access through the Samsung Wallet application.

Park's comments arrive in the wake of Samsung's significant first stablecoin deployment in the U.S., which involved the integration of USD Coin (USDC) facilitated by partnerships with Coinbase and digital asset services provider Bastion. Previously, it was reported that Samsung's wallet app would extend support for USDC transfers to a vast network of 82 million Galaxy devices in America, which began rolling out in late October. This feature now enables users to hold USDC, transfer it to eligible cryptocurrency wallets, and remit funds to banks globally, allowing recipients to receive local currency without needing to open a crypto wallet. The service, which is facilitated by Bastion's infrastructure, includes custody of USDC under Coinbase Prime Vault, supported by both Solana and Sui blockchains, and enforces identity verification along with biometric security on compatible devices.

Future Opportunities

Looking ahead, Park anticipates that stablecoins could provide fresh opportunities for digital financial services in South Korea, expanding beyond traditional bank transactions and card payments. His suggestions also touch on the future use of stablecoins in the tokenization of securities, especially as regulations begin to take shape. He indicated that financial institutions are gearing up for security token offerings (STOs), with widespread issuance expected to commence next year. The proposed digitization efforts include allowing various securities like stocks and bonds into a regulated market, with a target start date of February 2027, depending on the Financial Services Commission's evolving regulations.

Park also mentioned ongoing trials within domestic financial institutions to investigate how stablecoins might be integrated into the securities settlement process, revealing that experiments are underway, such as the collaboration between Eugene Investment & Securities and BEATOZ to assess stablecoin use for subscription payments in tokenized securities.

Concerns and Regulatory Considerations

Despite the promising applications of stablecoins, Park raised important concerns about their potential impact on the existing financial framework in South Korea. He warned that a significant shift of funds from bank deposits to stablecoins could constrict banks’ capacity to extend credit, which is crucial for small to medium enterprises and borrowers with limited credit history. Moreover, he noted that the presence of stablecoins might alter the effectiveness of central bank policies, particularly if stablecoins do not yield interest, potentially disrupting monetary policy transmission.

“While there are merits to introducing stablecoins, our regulatory approach must address these challenges comprehensively to promote sustainable financial innovation,”

Park concluded, emphasizing the need for careful regulatory consideration regarding transaction costs and compliance measures. Recent collaborations, such as that between Kakao Pay, KakaoBank, and Fireblocks, underscore the importance of building a stablecoin ecosystem that meets local regulations and security standards before any commercial stablecoin deployment is announced.