A consortium initiative Namsan, led by SOOHO.IO and Chainlink to pioneer the Korean won stablecoin ecosystem, has conducted a live pilot for foreign tourists, where USD-based stablecoins were exchanged to Korean won digital vouchers at conversion fees more than 30% lower than conventional FX channels offer.
SOOHO.IO, a Korean blockchain technology company known for contributing to major digital asset infrastructure projects, has launched Project Namsan, a consortium initiative to establish a Korean won-denominated stablecoin ecosystem. Chainlink, a leading provider of blockchain oracle and interoperability solutions, has joined as a key technical partner.
The project introduces an innovative approach to foreign exchange. In a live pilot involving international tourists, participants deposited USD-based stablecoins and received KRW-denominated digital vouchers for local payments. The trial demonstrated cost savings of over 30% compared with traditional foreign exchange channels, highlighting the potential of stablecoins to simplify cross-border transactions and make them more accessible.
The pilot, that has been running since July in collaboration with public enterprises including Grand Korea Leisure (GKL), illustrates real-world applications of stablecoins. GKL, operator of the foreigner-only Seven Luck casinos that attract 1.5 million international visitors annually, provided a testing ground for the tourist payment use case.
Project Namsan builds on a 2024 strategic partnership between SOOHO.IO and Chainlink to develop tokenized asset and CBDC use cases across Asia, particularly in Korea, Japan, and Thailand. It also extends SOOHO.IO’s earlier collaboration with the Bank of Korea on Purpose Bound Money (PBM), which enables programmable controls over how digital currencies can be used.
SOOHO.IO CEO Jisu Park described the initiative as a milestone for Korea’s digital finance sector, while Chainlink emphasized its role in ensuring interoperability and reserve transparency. Together, the partners aim to advance programmable money standards and integrate stablecoins into Korea’s financial ecosystem at scale.
The initiative relies on Chainlink’s Cross-Chain Interoperability Protocol (CCIP), on-chain Net Asset Value (NAV) data provisions, and Proof of Reserve system. Together, these ensure secure connectivity across public and private blockchains and continuous verification of stablecoin reserves. This delivery-versus-payment model enhances transparency and reliability of the digital asset use, addressing long-standing concerns about stablecoin collateralization and FX settlement risks.
The strategic importance of this collaboration goes beyond FX democratisation. The project also reflects wider global efforts to broaden the promising stablecoin landscape beyond USD-pegged tokens. While U.S. dollar stablecoins dominate global markets, reliance on them poses risks for regions seeking currency sovereignty in digital finance. By introducing a KRW-backed alternative, Korea positions itself at the forefront of diversifying stablecoin infrastructure.
Unlike some emerging-market currencies, the Korean won is considered relatively stable, supported by South Korea’s robust economy and strong regulatory oversight. This stability makes it a suitable foundation for a local stablecoin ecosystem, both for domestic payments and cross-border use cases.
We must note that Namsan initiative is not the only one promoting KRW-pegged stablecoins or digital assets based on local currencies of Asia. Last week, South Korean crypto custody firm BDACS also launched a local currency-backed stablecoin named KRW1 on Avalanche. Almost simultaneously, a stablecoin pegged to the offshore Chinese Yuan (CNH), AxCNH, was presented at the 10th Belt and Road Summit in Hong Kong.
Other countries across the globe are also trying to diversify the availability of stablecoin assets with local initiatives as alternatives for USD-dominance in stable crypto sector. Earlier this year, we witnessed launches of the new EURAU token from AllUnity, backed by another pretty stable asset – European euro.
Why you should be interested in stablecoins?
