KRW-Based Stablecoins: Trademark Race Gains Momentum Amid Regulatory Uncertainty

Financial Institutions Proceed With Caution While Gaming Companies Lead Innovation

The trademark war for KRW-based stablecoins is intensifying, highlighting strategic jockeying among banks, fintech firms, digital asset exchanges, gaming companies, and private entities. Yet, while the surge in trademark filings underscores widespread interest, the lack of concrete issuance plans and regulatory clarity paints a mixed picture. Industry experts warn that Korea’s slow regulatory progress may cost the sector its edge in the global digital asset market.

Trademark Surge Reflects Growing Interest Amid Uncertainty

As of October 24, data from the Korea Intellectual Property Rights Information Service (KIPRIS) shows a total of 776 trademark applications for KRW-backed stablecoins. Out of these, 687 applications were submitted by 64 organizations. Here's a breakdown by sector:

• Banks and fintech firms: 408 filings from 35 entities
• Blockchain-focused companies: 120 filings from 17 players
• Digital asset exchanges: 11 filings from 3 firms
• Other businesses: 148 filings across 9 enterprises

The substantial number of filings reflects a preemptive approach by companies readying themselves for eventual regulatory developments. Trademark ownership could offer a competitive advantage once stablecoin issuance receives legal backing.

Financial Institutions Hold Back, Gaming Companies Push Forward

Over the last five weeks, major financial institutions—including KB Kookmin, Hana Bank, Woori Bank, NH Nonghyup, K-Bank, and BNK Financial Group—joined the Stablecoin Committee under the Open Blockchain & DID Association (OBDIA). These banks have also filed for KRW-based stablecoin trademarks and are conducting internal research.

This move signals a cautious interest from the banking sector in exploring stablecoin opportunities while waiting for clear regulatory frameworks. In parallel, top-tier digital asset exchanges such as Bithumb, Dunamu, and Korbit have filed their own trademarks, positioning themselves for compliance and readiness once regulations accelerate.

However, the “file and wait” approach remains the dominant strategy for the financial sector. A lack of regulatory clarity continues to stall real business initiatives. “The absence of detailed legal guidelines hinders internal development. We’re closely watching foreign examples like the U.S. STABLE Act and hoping domestic regulations follow suit soon,” said a representative from the banking industry.

In contrast, Korea’s gaming sector is advancing boldly. WEMADE PLAY recently announced plans to integrate its proprietary stablecoin, WEMIX Dollar (WEMIX$), into newly launched social casino games. Similarly, Nexuss introduced KRWx stablecoin last month via its CROSS initiative and registered it on Binance Smart Chain (BNB Chain).

Issuance Authority Sparks Debate Between Private and Public Interests

The question of who should control stablecoin issuance remains a contentious topic. The Bank of Korea (BOK) favors a cautious, bank-led approach, citing concerns over potential risks to monetary sovereignty. BOK Governor Lee Chang-yong recently expressed, “Granting non-banking entities the authority to issue stablecoins could create significant problems. A steady, bank-centered path is necessary.”

In contrast, blockchain innovators and the broader digital asset industry advocate for an open issuance model. They argue that decentralizing issuance across multiple sectors fosters financial inclusivity and drives technological innovation. With both sides firmly entrenched in opposing views, regulatory discussions have reached an impasse.

To address these disputes, the National Assembly introduced the “Digital Asset Basic Act” last month. This proposed legislation lays out licensing rules for stablecoin issuers, including requirements for a 1:1 peg rate system, reserve mandates, and operational transparency. Though the act represents progress, it remains in its early stages and is under review by the Political Affairs Committee.

Regulatory Delays Fuel Industry Frustrations

The slow pace of regulatory progress is increasingly problematic for Korea's stablecoin ecosystem. Government focus remains fixed on more pressing economic concerns, such as managing household debt and establishing "bad banks," leaving digital asset regulations on the back burner.

Industry stakeholders are growing vocal about the consequences of regulatory inertia. “Companies are proactively preparing for regulatory compliance, but the lack of infrastructure keeps us stuck in a holding pattern,” said one business representative. “Without swift legal progress, the domestic market risks losing ground in the global race for digital asset innovation.”

While enthusiasm for KRW-based stablecoins continues to grow, the path forward hinges on regulatory advancements. Without timely legal frameworks, the market faces significant challenges in matching international competitors and securing a pivotal role in shaping blockchain-driven financial transformation.

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