South Korea launches quantum-secure pilot for domestic won stablecoin with iM Bank
A three-way partnership between BTQ, iM Bank and Finger Inc. aims to protect financial independence from foreign dollar coins using post-quantum cryptography on the Kaia mainnet.
South Korea has moved to secure its domestic financial system against the dominance of foreign digital currencies by launching a proof-of-concept pilot for a bank-led Korean won (KRW) stablecoin. The initiative, driven by a shared sense of crisis among regulators and financial institutions, seeks to establish a regulated digital won that ensures competitiveness and independence.
Vancouver-listed firm BTQ Technologies has been chosen as the core provider for post-quantum security for this project. The company will deploy its Quantum Secure Stablecoin Settlement Network across the infrastructure of iM Bank, working in collaboration with local technology vendor Finger Inc. This partnership marks a significant shift from theoretical risk management to actionable implementation by domestic financial institutions.
The technical architecture of the pilot pairs existing ECDSA cryptography with NIST-aligned post-quantum signatures, such as ML-DSA. This approach allows iM Bank to maintain operational continuity while preparing for future quantum threats, specifically addressing the harvest-now-decrypt-later risk. The stablecoin will be issued on the Kaia mainnet, a Layer 1 network formed from the merger of the Klaytn and Finschia blockchains, connecting the pilot to two of Asia's largest digital platforms.
Beyond the cryptographic upgrades, the proof-of-concept will test real-time reconciliation between bank reserves and on-chain supply. The project also aims to standardise smart contract design and establish connectivity for overseas distribution. BTQ is providing strategic advisory support across the three-way partnership to ensure the infrastructure meets rigorous standards for a regulated asset.
A banking industry official highlighted the urgency of the move, stating that there is a shared sense of crisis regarding the potential for foreign dollar coins to dominate the domestic market. The initiative aims to secure the independence and competitiveness of the financial system through a won-based digital currency, a goal that aligns with broader efforts to mitigate external financial dependencies.
This pilot arrives as eight Korean banks advance plans for a joint venture to issue a KRW stablecoin, signalling a competitive build-out of regulated digital won infrastructure ahead of expected legislation. Whether the project progresses to commercial issuance under QuINSA guidelines will likely shape Korea's broader migration timeline regarding digital currency adoption.
