Tether And Circle Court South Korean Banks As Nation Prepares Stablecoin Regulatory Framework

[Redator]

South Korea is now actively in the global race to regulate stablecoins. America’s recent push with the GENIUS Act and the CLARITY Act is clearly the catalyst in South Korea’s move to establish a formal regulatory framework. 

Executives from the world’s two largest stablecoin issuers, Tether and Circle, landed in Seoul to hold meetings with the country’s financial leaders and regulators. 

Local media reports published on 24 August 2025 confirmed that South Korea’s Central Bank – Bank of Korea (BoK) Governor Lee Chang-yong met Circle President Heath. “Koreans must have access to stablecoins denominated in their own currency when buying and selling digital assets or making international remittances,” said Tarbert.

The sudden high-level engagement has spurred speculation: Can South Korea become the new hub for regulated stablecoin innovation?

South Korea’s top Banks said to meet Tether and Circle on Stablecoin Partnerships:https://t.co/k5h150NNUc pic.twitter.com/PVCnZPHNuG

— FENERATOR Crypto Strategy (@feneratorcom) August 25, 2025

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Circle President Meets BoK Governor, Tether Takes Lower-Profile Approach

According to South Korean press, Heath Tarbert, Circle’s President sat down with BoK Governor, Chairmen of Shinhan Financial Group and Hana Financial Group, and executives of the country’s two other banking giants – KB Financial Group and Woori Bank. Tarbert also met crypto players like Hashed and Dunamu (operator of KOrea’s largest exchange Upbit).

“People looking to purchase related goods and services in Korea may want to use a KRW-denominated stablecoin. As long as it’s properly regulated, there’s no reason not to try it,” said Tarbert.

Recently, BoK issued a statement saying that won-denominated stablecoins should be introduced at a gradual pace – first with rigorously-regulated commercial banks.

Conjecture is the Circle has already signed a stableoin-related deal with Hana Bank. However, this remains unconfirmed publicly. Local media also confirmed that Circle is currently conducting an unofficial recruitment process to recruit personnel to take charge of the overall domestic won stablecoin business.

Meanwhile, rival Tether took a lower-profile approach. CEO Paolo Ardoino is believed to have met with executives from Hana Bank and KB Bank. Notably, USDT accounts for nearly 70% of global stablecoin circulation and remains popular amongst Korean investors.

South Korea ranks among the top crypto markets by volume, yet regulation limits access to stablecoins.

Tether has just surpassed South Korea, becoming the 18th largest holder of U.S. Treasuries, highlighting the urgency for regulation that creates accessibility to stablecoins. pic.twitter.com/oTgTsmX3O7

— Jacob Wittman (@jakewittman) August 1, 2025

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South Korea’s Political Heavyweights Square Off Over Stablecoin Bills

Last month, South Korea’s two largest political parties took center stage, unveiling rival stablecoin bills in the country.  The prohibition of interest payments on stablecoins has become the most contentious issue in the stablecoin bills. Lawmakers from both the ruling Democratic Party (DP) and the opposition People Power Party (PPP) introduced legislation that could pave the way for won-backed stablecoins.

According to local news report published on 28 July 2025, “the ruling party believes that interest payments should be banned to prevent market disruption, while the opposition party believes that it is necessary to increase the competitiveness of won stablecoins.”

Each proposal reflects diverging philosophies on innovation, protection and monetary sovereignty.

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Key Takeaways

Circle CEO Heath

Tarbert reportedly emphasized the potential role of a Korean won-backed stablecoin (KRW stablecoin) in transforming the financial landscape. 

In conversations with both regulators and bankers, Tarbert’s message was clear: Circle wants to collaborate, not compete.

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