Tether Executives Conduct Stablecoin Discussions with Major South Korean Commercial Banks

Tether, the company responsible for the stablecoin USDT, engaged with representatives from the prominent South Korean financial institution Shinhan Bank on September 8.

The South Korean news outlet MoneyS reported that Tether representatives are in the nation to participate in a local blockchain conference.

Additionally, the executives are reportedly arranging discussions with various domestic fintech firms, including the neobank Toss.

The headquarters of Shinhan Bank in central Seoul, South Korea. Tether officials met senior Shinhan executives at the building in the morning of September 8, with stablecoins on the agenda. (Source: Mobius6 [CC BY-SA 4.0])

Tether and Korean Banks Discuss Stablecoins

The outlet reported that several Tether executives were present at the Shinhan meeting, including Vice President Marco Dal Lago, who oversees Global Expansions and Strategic Partnerships.

Quynh Le, Tether’s Regional Expansion Lead for the APAC region, and Andres Kim, the firm’s Expansion Manager based in Bolivia, were also present.

This meeting marks the second occasion in a month that Shinhan Financial Group Chairman Jin Ok-dong has met with a significant US stablecoin issuer.

Jin and several heads of competing South Korean banks previously met with Heath Tarbert, the leader of USD Coin issuer Circle, during his visit to Seoul late last month.

A representative from Shinhan Financial Group informed media outlets that Shinhan and Tether “intend to keep discussing ways to establish mutual networks.”

South Korean legislators are actively advancing plans to regulate KRW-pegged stablecoins. Recognizing a potential opportunity, both Tether and Circle have recently dispatched delegations to Seoul.

Cho Young-seo, the Vice President of KB Kookmin Bank, is also scheduled to meet with Tether representatives on September 10.

Officials from KEB Hana Financial Group and Woori Financial Group have already engaged in discussions with Tether representatives regarding stablecoins. These meetings took place on August 26.

While there are no immediate plans for additional meetings during the Tether officials’ visit, the “possibility of further discussions remains open,” according to MoneyS.

Another significant financial group, Nonghyup (NH), has also previously sent its blockchain and cryptoasset division leaders to meet with Tether executives.

Legislative Stalemate

South Korean lawmakers are currently split on whether to permit major technology companies and IT startups to issue stablecoins, alongside large financial institutions.

The USDT market cap over the past 12 months. (Source: CoinGecko)

Conservative factions argue that only the commercial banking sector should be authorized to issue KRW stablecoins.

MoneyS concluded that “global companies with established issuance and distribution networks” are likely to persist in exploring collaboration opportunities with domestic financial entities until lawmakers reach a consensus.

Allowing South Korean companies to issue stablecoins was a significant campaign promise for President Lee Jae-myung prior to the June elections.

Since Lee assumed office, numerous major banks and leading IT companies have registered trademarks related to KRW-pegged stablecoins.

This includes internet giants Kakao and Naver, both of which operate widely utilized e-payment platforms.

Experts believe that integrating stablecoins would be relatively straightforward for both Kakao and Naver. Other analysts, however, suggest that hardware giants like Samsung and LG could also potentially enter the market.

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