- Naver Financial is launching a stablecoin wallet in Busan next month.
- The wallet helps residents and tourists convert fiat currencies to local currencies.
- The move comes amid Naver’s much-anticipated acquisition of Upbit operator Dunamu.
In a pivotal move that underscores South Korea’s commitment to digital asset innovation and its vision of becoming a major crypto hub, Naver Financial is planning to launch a stablecoin wallet service next month.
This innovative project, developed in collaboration with Korean venture capital firm Hashed and the Busan Digital Asset Exchange (BDAN), promises to transform the way residents and tourists make transactions in the city. Scheduled to go live next month, the stablecoin wallet is designed to facilitate easy exchanges of different fiat currencies into the regional currency.
As Naver Financial embarks on this new venture amidst its acquisition of Dunamu, the operator of South Korea’s largest crypto exchange, Upbit, the stage is set for a significant leap forward in the adoption of digital assets in the country.
Naver Financial’s Stablecoin Wallet to Go Live Next Month
According to a recent local report, Naver Financial, the fintech arm of the tech giant Naver, is poised to introduce its stablecoin wallet services next month in Busan. Reports reveal that the platform has finalized the development of the project and is currently undergoing final verification.
Significantly, this stablecoin wallet will be integrated with Naver’s existing crypto wallet, called the Naver Pay Wallet. However, the wallet’s full functionality may be limited until South Korea establishes clear regulations for local currency-pegged stable assets.
The project, which is a collaboration with Hashed and BDAN, is designed specifically for Busan residents and tourists. It began development in May, with the partners handling the technological infrastructure and Naver leveraging its payment systems to power the wallet.
The wallet enables these people to convert their fiat currency to the regional currency, “Dongbaek-jeon,” in the form of a stablecoin.
What is Dongbaek-jeon?
Notably, Naver’s stablecoin wallet enables users to convert their fiat currency to the regional currency, “Dongbaek-jeon,” in the form of a stablecoin. The “Dongbaek-jeon” is the existing regional currency payment system in Busan, functioning like a credit card that offers cashback benefits to local residents. Introduced by the Busan city government, its primary goal is to boost local commerce and economy by encouraging spending. Currently issued by BNB Busan Bank, the currency is being considered for a transition from a prepaid point system to stablecoins, with a research journey underway. With a significant user base, “Dongbaek-jeon” has an average monthly user count of 1.5 million.
Naver to Acquire Upbit Operator Dunamu
Interestingly, this development comes on the heels of ongoing discussions of Naver’s potential acquisition of Upbit operator Dunamu. As previously reported by Times of Blockchain, Naver confirmed its acquisition plans.
Naver’s plan includes the purchase of Dunamu via a stock swap, making the latter a wholly-owned subsidiary. This move is expected to pave the way for launching a won-backed stablecoin and other digital finance initiatives.
If finalized, the Upbit acquisition would give Naver a significant foothold in South Korea’s crypto space. This move is also expected to have a crucial impact on South Korea’s financial economy.
After the purchase, Dunamu Chairman Song Chi-hyung is anticipated to become the largest shareholder of Naver Financial, while Naver would become the second-largest shareholder. Industry sources suggest that the share swap ratio is likely to be around 1:3 or 1:4 between Naver and Dunamu.
