Naver Financial to Launch Stablecoin Wallet in Busan City

Naver Financial, the fintech firm of South Korea’s leading tech conglomerate, Naver, is launching a new stablecoin wallet in Busan, South Korea’s second-largest city. According to the announcement, Naver Financial has finished developing the wallet and is now testing it. This project aims to make blockchain-based payments easy for residents in Busan and tourists.

New Stablecoin Wallet Comes With Benefits

Naver is collaborating with the venture capital firm Hashed and the Busan Digital Asset Exchange (BDAN) to create this wallet. Notably, the launch is scheduled for next month. This partnership combines expertise in finance, blockchain technology, and digital assets, helping to establish Busan as a growing center for blockchain innovation.

The new wallet will also support Dongbaek-jeon, a local currency in Busan. Dongbaek-jeon is usually offered as a prepaid card or mobile payment option to help the local economy. Now, it will be available in a digital format as a stablecoin linked to the local currency’s value. Users can easily exchange different fiat currencies into this Busan-specific stablecoin for use at participating merchants in the city.

Importantly, the company plans to combine its new stablecoin wallet with Naver Pay Wallet, its current cryptocurrency payment service. This combination could create a single platform where users can handle digital assets, stablecoins, and everyday payments all in one place.

However, the introduction of advanced features might take time. Until clear rules are set, some functions, such as wider compatibility or adoption by major merchants, may not be available.

Naver to Acquire Upbit Operator Dunamu

Recently, Naver said it plans to buy Dunamu, operator of the country’s largest cryptocurrency exchange, Upbit. As reported by TheCoinRise, Dunamu will hold a board meeting on November 26 to finalize the details of the acquisition.

Interestingly, Naver plans to use a stock swap to make Dunamu a wholly owned subsidiary. The goal is to strengthen Naver’s presence in digital finance, blockchain technology, and new payment systems. Furthermore, this move aligns with the firm’s goal to increase its presence in the fast-growing financial technology sector.

Additionally, both parties plan to work on a Korean won-backed stablecoin project. They will also introduce new digital finance initiatives. 

South Korea to Introduce Stablecoin Rules

In August, the South Korean Financial Services Commission (FSC) announced its plans to submit a stablecoin bill to the National Assembly. The bill is part of the country’s second set of digital asset laws under development. 

The proposed legislation is similar to the U.S. GENIUS Act, which governs stablecoin rules, signed into law in June. The upcoming bill will focus on regulating the creation and maintenance of stablecoins. It will also require that every stablecoin is backed by reliable collateral to protect users from financial loss.