Upbit Collaborates with Naver for the Creation of a Stablecoin System in Korean Won
In the rapidly evolving world of cryptocurrency, South Korea is making significant strides in establishing a clear regulatory framework for won-backed stablecoins. This development comes as Upbit, the country's largest crypto exchange, and Naver Pay, a leading fintech payment platform, join forces to develop a Korean won stablecoin.
The regulatory landscape in South Korea is progressing, with the government actively working on the Digital Asset Basic Act. This legislation officially supports licensed issuance of stablecoins pegged to the Korean won, with a focus on transparency, reserve audits, and systemic risk control. The draft released in June 2025 marks a pivotal moment, indicating that stablecoin projects will soon be legally codified. This stable regulatory environment is expected to boost market confidence and encourage innovation and institutional investment.
The Upbit-Naver partnership, announced in mid-2025, is seen as a strategic move to be at the forefront of the emerging won-pegged stablecoin market in South Korea. This alliance aims to modernize digital payments and enhance liquidity and stability in the South Korean crypto ecosystem, signalling strong private-sector confidence ahead of full regulatory clarity expected soon.
The collaboration involves Naver's payment platform, Npay, leading the project, with Upbit providing support for technological and infrastructure components. The partnership is expected to materialize by late 2025 or early 2026, with a trust-based or 1:1 deposit backing model pending regulatory approval and market introduction.
This combined public and private momentum reflects a strategic national effort to secure a competitive edge in the global digital asset space through regulated, stable digital currencies. The move comes as Europe is being urged to adopt stablecoins amid U.S. dominance, and similar trends in Japan and the EU have resulted in increased electronic fiat usage, providing a context for Korea's potential stablecoin success.
In other news, Bitcoin has shown a notable 23.69% growth over the past 90 days, amid fluctuating 24-hour volumes of $44.50 billion, an increase of 11.15%. Bitcoin is currently valued at $105,914.48, with a market cap of $2.11 trillion, according to CoinMarketCap.
Meanwhile, Kraken has secured a MiCA license for EU crypto operations, and Ripple is seeking MiCA licensing to expand in the EU market. Crypto firms are seeking federal reserve account access, and Linekong Interactive has unveiled a Web3-focused LK Crypto Division.
As the crypto landscape continues to evolve, it is clear that regulation will play a crucial role in shaping the future of digital currencies. With South Korea's progressive approach to stablecoin regulation, the country is well-positioned to capitalize on the growing demand for digital won stablecoins.
[1] Source: Coincu Research Team [2] Source: Upbit and Naver Press Release [3] Source: Korean Ministry of Economy and Finance [4] Source: Naver Newsroom
The Digital Asset Basic Act, currently under development in South Korea, will officially support licensed issuance of stablecoins pegged to the Korean won, focusing on transparency, reserve audits, and systemic risk control. The Upbit-Naver partnership, aimed at modernizing digital payments and enhancing liquidity in South Korea's crypto ecosystem, is a strategic move to be at the forefront of the emerging won-pegged stablecoin market, pending regulatory approval.
