As legislation on the Digital Asset Framework Act is delayed, traditional financial firms have begun a race to secure a foothold in the stablecoin market. Banks and card companies are signing memorandums of understanding (MOUs) with global blockchain and payment infrastructure firms or moving to conduct technical verification, preparing to enter the market after formal rules are in place.

As of May 11, political and industry sources say 1 Digital Asset Framework Act bill and 3 stablecoin-related bills have been introduced in the National Assembly, but all are pending in a subcommittee of the National Policy Committee.

Key rules, including issuance requirements, reserve regulation and user protection mechanisms, have yet to be detailed. As a result, the market is first seeing moves to secure payment, remittance and distribution infrastructure ahead of the law taking effect.

Woori Bank and MoonPay recently signed an MOU to build infrastructure for a won-denominated stablecoin. MoonPay is a global digital asset payment and stablecoin infrastructure company, and the agreement calls for discussions with Woori Bank on the potential for global use of a won stablecoin and cooperation plans in remittance and payments.

NH Nonghyup Bank also signed a strategic MOU with NHN KCP to build a stablecoin-based payment ecosystem. The two plan to jointly design a stablecoin-based payment and settlement structure, expand the payment ecosystem by linking merchant and platform networks, and secure interoperability with digital payment infrastructure at home and abroad.

iM Bank signed a three-way MOU with Finger and Validator to build issuance and distribution infrastructure for a won stablecoin. The three plan to use a joint proof of concept (PoC) to check a real-time reconciliation system between bank deposits and blockchain issuance volume, smart contracts and connections to overseas distribution infrastructure.

Moves in the card industry are also accelerating. Shinhan Card signed a strategic MOU with the Solana Foundation for cooperation on stablecoin payment technology and expansion of a Web3 payment ecosystem.

Based on a proof of concept completed last year, the two sides will conduct more advanced verification this year. They plan to use the Solana testnet to implement payment scenarios between customers and merchants, and to check the blockchain network's technical stability and ease of use.

KB Kookmin Card is also expanding cooperation on stablecoin-based payment models. Working with Solana and AhnLab Blockchain Company, KB Kookmin Card is checking technical issues that could arise in real merchant environments and is conducting technical verification of the entire process, including creating and managing stablecoin wallets, payment authorisation and settlement processing.

Hana Card also signed a strategic MOU with Circle in December last year, and in March this year it worked with a Circle affiliate and Crypto.com to pursue USDC payment marketing targeting foreign visitors to South Korea.

The initiative offers Crypto.com Visa card users with a history of holding or topping up USDC a partial rebate of their payment amount in Cronos (CRO) when they make purchases at domestic merchants.

Such moves are seen as groundwork for moving immediately into commercialisation after the law takes effect. Stablecoins are tied to existing financial infrastructure, including not only issuance and distribution but also reserve management, linkage to payment networks, customer identification, anti-money laundering and overseas settlement.

Banks have deposit management and credibility, while card firms hold merchant payment networks and points of contact with users, which could expand their role in the early market after rules are in place.

Existing digital asset companies are also not standing still. Dunamu completed a proof of concept with Hana Financial Group on blockchain-based overseas remittance technology, and Toss is also known to be reviewing blockchain-based payment infrastructure and stablecoin use plans.

Still, constraints remain on commercialisation and external expansion, as the issuer, reserve regulation and supervisory framework have not been finalised.

Industry officials believe the longer the legislative delay continues, the more intense the competition for leadership between financial firms and digital asset companies will become.

Financial firms have existing payment networks and experience responding to regulation, while digital asset companies have blockchain technology and user bases. Depending on the direction of institutional design, the market structure could change, including bank-led issuance, participation by non-bank operators, or consortia between financial and technology companies.

An industry official said, "Recent stablecoin-related agreements by financial firms are less about launching services immediately and more about verifying in advance which areas they can secure a role in after institutionalisation." The official added, "The more the Digital Asset Framework Act discussions are delayed, the more likely it is that an initial business landscape could form around financial firms with payment networks and customer bases."