South Korean Exchange Upbit Collaborates with Naver Pay on KRW Stablecoin
Upbit, a South Korean cryptocurrency exchange, is collaborating with Naver Pay to develop a won (KRW) stablecoin initiative. Details on this payments business are limited, but an official from Dunamu, Upbit's parent company, stated that they will clarify their cooperation once the necessary system is in place.
The recent election of a crypto-friendly president has strengthened support for a KRW-based stablecoin market, leading the Bank of Korea to halt its central bank digital currency (CBDC) plans.
A KRW stablecoin could significantly impact local traders by alleviating restrictions on KRW transactions and reducing price spreads, known as the "kimchi premium," between South Korean and U.S. exchanges. This would enable easier trading of the stablecoin against USDT or USDC, minimizing fiat limitations.