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South Korea’s biggest banks are reportedly in talks with Tether and Circle to discuss potential stablecoin partnerships and distribution in the country.
Four Major South Korean Financial Groups Looking Into Stablecoins
As reported by YonHap, major South Korean financial groups will see their top executives meeting with Tether and Circle this week. Tether and Circle are the issuers of the two largest stablecoins: USDT and USDC, respectively.
Stablecoins are cryptocurrencies that have their price pegged to a fiat currency. This means that unlike assets such as Bitcoin, these tokens normally don’t face any major fluctuations, hence the “stable” in their name.
South Korea has been making a push toward digital assets and stablecoins under the leadership of pro-crypto President Lee Jae Myung. One of the promises made by the President was to establish a market for Korean won-based stablecoins. The country’s financial regulator is expected to release its stablecoin framework in October, as Bitcoinist reported earlier in the week.
Now, it seems major players in the country are also laying the groundwork for diving into the space. As per the report, Shinhan Financial Group CEO Jin Ok-dong and Hana Financial Group CEO Ham Young-joo are set to have separate meetings with Heath Tarbert, the president of Circle, on Friday. The latter is also expected to meet with a Tether official.
Two other big financial groups, KB Financial Group and Woori Bank, will also see executives meeting with Tarbert, but the details of their talks aren’t yet known to the public.
YonHap notes,
The banking heads are expected to discuss areas of partnership, including the distribution and transactions of dollar-pegged stablecoins in South Korea, as well as the issuance of won-backed stablecoins.
Elsewhere in Asia, Hong Kong launched its legislation on stables at the start of this month. Big names like Standard Chartered in its joint-venture have lined up to obtain an issuer license in the city.
Speaking of stablecoins, on-chain data shows the Tron network has observed huge shifts from USDT mega wallets in the past day, as explained by an analyst in a CryptoQuant Quicktake post.
The trend in the distribution of the daily USDT transfers across wallet groups on the Tron network | Source: CryptoQuant
As the above chart displays, 57% of the latest USDT transactions on the blockchain involved a size greater than $100 million, indicating elevated activity from institutional-grade entities. In total, the largest of USDT wallets on Tron have seen a balance change of a whopping $6.95 billion alongside these transactions.
BTC Price
Bitcoin fell under $112,000 earlier in the day, but it appears the cryptocurrency has found a slight rebound as its price is back at $113,700.
Looks like the price of the coin has been sliding down in recent days | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
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