The Solana Foundation has signed a memorandum of understanding (MOU) with Wavebridge, a Korean blockchain infrastructure company, to explore the development of a Korean won (KRW)-pegged stablecoin and other digital asset-based financial products.
On October 14, Maeil Business Newspaper reported that Solana and Wavebridge will be working on various projects, like the development of a tokenization engine to issue and authenticate stablecoins, research into money market fund (MMF) tokenization, and offering blockchain education programs for large Korean banks.
The collaboration is aimed at creating a financial infrastructure that is tailored to Korea’s strict regulatory environment. The new tokenization engine will oversee critical processes such as whitelist management, transaction control, and verification, ensuring compliance with requirements for all digital asset activities.
The two firms will also investigate the feasibility of MMF tokenization, under which investment funds might be run on blockchain networks. This idea mirrors similar projects in global markets, such as BlackRock’s move to bring U.S. dollar-based MMFs on-chain.
The partnership comes amidst a broader trend in South Korea’s finance and technology sectors, where international blockchain platforms are partnering with local firms familiar with local law and compliance procedures.
South Korea’s focus on stablecoins
The country is preparing its first legal framework for stablecoins. The Financial Services Commission (FSC) is expected to submit a bill to the National Assembly this month. The rules, part of the Virtual Asset User Protection Act, will cover issuance, collateral management, and internal controls for firms handling won-backed stablecoins.
Additionally, in June, KB Kookmin Bank submitted 17 stablecoin trademark applications, which indicated intentions to establish a national stablecoin consortium with other large South Korean banks. The members of the consortium are Shinhan, Woori, NongHyup, IBK, Suhyup, Citi Korea, and Standard Chartered Korea, and the goal is to release KRW-pegged stablecoins by late 2025 or early 2026.