Key facts
- Toss, Optimism, and Sunnyside Labs are collaborating on a proof of concept for a Korean won-based stablecoin.
- The initiative aims to explore the application of blockchain technology for domestic payment infrastructure.
- Key areas of investigation include settlement control, KYC/AML compliance, and transaction privacy on a public ledger.
- Optimism will provide the blockchain infrastructure, while Sunnyside Labs will offer privacy-preserving technology.
Toss, the operator of a popular South Korean mobile money transfer app, is reportedly collaborating with blockchain company Optimism and privacy solutions provider Sunnyside Labs on a proof of concept (PoC) for a Korean won-based stablecoin. The three-month initiative aims to assess the feasibility of applying blockchain technologies to domestic payment infrastructure for financial institutions.
Optimism will supply the underlying blockchain infrastructure, while Sunnyside Labs will contribute its privacy-preserving technology. The PoC will specifically investigate whether financial institutions can maintain control over the settlement process, the viability of implementing know-your-customer (KYC) and anti-money laundering (AML) verification, and the possibility of ensuring transaction privacy on a public blockchain ledger. Toss intends to leverage the findings from this PoC to establish compliant stablecoin-based payment systems within the country.
This development follows similar explorations into stablecoin payments by other major South Korean financial entities. Shinhan Card, a leading credit card provider, has partnered with the Solana Foundation to test stablecoin payment feasibility and non-custodial wallets. Globally, payment giants like Visa have already implemented stablecoin settlement services on the Solana blockchain, with companies such as Mastercard and South Korea's BC Card also investigating stablecoins for enhanced payment and settlement processes.