A Decision That Can’t Be Deferred Any Longer (ASA News #9)

*[ASA News] is a bi-weekly newsletter where we share the most important news related to stablecoin in Asia. (2025.11.24~12.07)

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Written by Moyed, Heechang

1. South Korea Pushes Regulators for Stablecoin Bill by Year-End, Issues Final Ultimatum

1.1 [News] Legislative Delays Continue Amid Government–Parliament Disagreements

Source: South Korea pushes regulators for stablecoin bill

The South Korean National Assembly is pressuring financial regulators to submit a draft of the stablecoin bill by December 10, accelerating efforts to establish a regulatory framework. The ruling party described this as a “final notice,” warning that if the deadline passes, the Political and Administrative Committee will proceed with its own legislative process. If the draft is submitted on schedule, discussions are expected to begin in earnest during the provisional parliamentary session in January 2026.

The Financial Services Commission (FSC) acknowledged that related meetings have taken place, but stated that no conclusions have been reached on key issues. Although both the government and the legislature stress the need for swift coordination, fundamental disagreements over the regulatory direction remain unresolved. In particular, disputes over a banking-centric issuance structure have surfaced and are stalling negotiations.

The most significant flashpoint is the proposal requiring banks to hold at least 51 percent of the stablecoin issuer’s equity. The Bank of Korea favors a bank-led issuance model for reasons of financial stability and anti-money-laundering oversight, while the FSC argues for a more flexible ecosystem that includes non-bank entities. These conflicts are fueling skepticism that South Korea will finalize stablecoin regulations within the year.

1.2 Commentary

1.2.1 Moyed (ASA Contributor, Delta Network) - Beyond the Issuer-Structure Debate, Usage Will Decide the Winner

While the current political debate is centered on deciding “who should have the right to issue,” actual market players have already moved far beyond the pre-issuance stage and are competing to secure real-world usage. Major banks have been racing ahead of the legislation by securing trademarks, partnering with global issuers, and conducting technical proofs of concept. KB Financial Group built a dedicated stablecoin unit and ran international remittance pilots with SWIFT. Hana Financial has been actively expanding collaborations with Circle and Tether to integrate global networks. NongHyup Financial, meanwhile, is leading a joint banking project and conducting its own PoC, signaling that the industry is effectively ready to deploy the moment regulations are finalized.

If the Bank of Korea’s preferred structure is adopted, requiring a bank consortium to hold a minimum 51 percent equity stake in issuers, independent licensing for non-bank enterprises will likely be blocked in practice. Big Tech and fintech firms would be forced into roles such as technology partners or service frontends, rather than issuers. Considering platform companies’ strengths in payments, commerce, and wallets, their influence will not disappear, but the center of gravity in the ecosystem will shift decisively toward banks.

In the long run, however, the decisive factor for market leadership will be usage, not issuance. Issuing is technically repeatable, but usage relies on customer touchpoints and ecosystem integration, which allows for differentiation and sustainable advantage. This is where Shinhan Financial’s approach is particularly instructive. Shinhan has focused on building real user experiences, including stablecoin payment experiments through its food-delivery app and a point-to-stablecoin exchange model with major retail partners. Once regulations are established, the competition will quickly shift from issuance to usage, and the models that deliver immediate and tangible value to users are likely to gain the upper hand.

2. Sony Bank Plans to Issue USD Stablecoin in the U.S. by 2026

2.1 [News] Aiming to Build a Unified Payment Token for Sony’s Ecosystem

Source: Sony Bank to issue USD stablecoin in the U.S.

Nikkei reports that Sony Bank is considering issuing a U.S. dollar-linked stablecoin in 2026. To achieve this, Sony Bank, part of Sony Financial Group, is planning to establish a separate legal entity in the United States and reportedly applied for a local banking license in October. The project will leverage infrastructure from Bastion, a U.S.-based stablecoin issuer.

The stablecoin will initially target payments within Sony’s ecosystem, including gaming, animation, and subscription services for U.S. users. It is intended to replace or complement credit card payments, lowering fees and improving efficiency across Sony’s platforms. Since more than 30 percent of Sony’s global revenue comes from the U.S., a dollar-based stablecoin could serve as a unifying payment layer across its content businesses.

Sony has also been strengthening its blockchain footprint. In January, it launched Soneium, an Ethereum Layer-2 chain designed to support content creators and fan communities. Meanwhile, Japan has been accelerating its yen stablecoin market, formally approving JPYC as the first license-compliant yen stablecoin issuer. Against this backdrop, Sony Bank’s U.S. stablecoin initiative is widely viewed as a strategic move to enter the global stablecoin market.

2.2 Commentary

2.2.1 Moyed (ASA Contributor, Delta Network) – What Sony’s Closed-Ecosystem Strategy Reveals

Sony Bank’s plan to issue a USD stablecoin in the U.S. is more than a financial expansion. It reflects Sony’s intent to overlay a proprietary payment layer onto its already vast content-driven closed ecosystem. By unifying payments across PlayStation, anime, and subscription products in the U.S., Sony seeks to standardize transactions within its ecosystem. This provides an interesting comparison point for Korean companies. Firms like Naver, Kakao, major retailers, and game publishers also operate large ecosystems, yet the existence of well-entrenched domestic payment rails means the incentive to introduce stablecoins for payments is relatively low. Sony, on the other hand, has a strong incentive because it operates globally, especially in the U.S., where credit-card costs are high and stablecoins can deliver immediate savings and scalability.

Another key question is why Sony prioritized a USD stablecoin instead of a JPY one. The practical reason is straightforward. A large share of Sony’s revenue comes from the United States, and most transactions occur in dollars. Even though Japanese regulators have recently formalized yen stablecoin rules and approved JPYC, Sony chose USD because it offers instant utility in its largest market. A yen stablecoin would face limitations in cross-border use, whereas a USD token can be deployed directly for U.S. subscriptions and in-game payments.

The initiative is being carried out through Connectia Trust, a Sony Bank subsidiary. It is designed to operate under a national trust-bank regulatory framework without deposit-taking or FDIC insurance. The structure allows Sony to keep stablecoin reserve management and digital asset custody in a highly regulated perimeter, while avoiding the obligations imposed on traditional banks. It is a corporate-friendly regulatory approach tailored for stablecoin operations.

3. Taiwan Set to Launch Its First Regulated Stablecoin in 2026

3.1 [News] Choice of Settlement Currency Emerges as Pivotal Regulatory Variable

Source: Taiwan authorities say first regulated stablecoin to launch next year

Taiwan’s Financial Supervisory Commission (FSC) expects the country’s first regulated stablecoin to launch in the second half of 2026, accelerating legislative momentum. FSC Chairperson Feng Jin-Lung announced that the Virtual Assets Service Act has passed cabinet review and could clear its third reading in the upcoming legislative session. Stablecoin regulations will be established within six months after the law is enacted, setting the groundwork for issuance no later than the end of next year.

Initial issuers will not necessarily have to be banks, but both the FSC and Taiwan’s central bank agree that financial institutions should lead initial issuance. The biggest unresolved issue is the choice of collateral currency. Regulators have not yet decided whether the stablecoin will be denominated in U.S. dollars (USD) or New Taiwan dollars (TWD). They stated that market demand will be the key determinant.

The currency choice carries structural implications for Taiwan’s financial system. Taiwan strictly prohibits overseas circulation of TWD, maintaining tight controls to prevent capital flight and unofficial exchange rates. Regulators are preparing strong stability requirements, including full reserve backing, asset segregation, and domestic custody. Yet they remain cautious, recognizing that the choice of currency will define the risk profile of the entire regime.

3.2 Commentary

3.2.1 Moyed (ASA Contributor, Delta Network) – What Taiwan’s Currency Choice Signals Amid Divergent Asian Stablecoin Strategies

Major Asian jurisdictions such as Singapore, Japan, and South Korea all share the goal of integrating stablecoins into their regulatory systems, but their approaches differ significantly. Singapore focuses on reserve rules and licensing to attract global issuers to its financial hub. Japan enforces 100 percent cash-equivalent reserves and mandatory redemption obligations, effectively institutionalizing a bank-centric model. South Korea remains stuck in a debate over whether banks should dominate issuance, balancing payment use cases with financial stability considerations. Taiwan, however, is in a uniquely different position where the choice of currency itself determines the nature of the regulatory framework.

The fact that Taiwan is openly considering a USD stablecoin instead of a TWD one is especially noteworthy. Taiwan is one of the most tightly controlled FX regimes in the world, and allowing TWD to circulate cross-border in stablecoin form could disrupt its long-standing monetary management structure. Paradoxically, this makes a USD stablecoin the “lower-risk option” for Taiwanese regulators. This stands in stark contrast to Korea, where discussions emphasize using a KRW stablecoin to strengthen domestic payment systems and financial sovereignty.

This raises an interesting question for Korea. Korea also has strict foreign-currency-outflow regulations, and KRW has limited global use, similar to TWD. Yet the Korean debate focuses on using a KRW stablecoin for domestic payments innovation. Viewed differently, however, Korea could follow Taiwan’s logic and allow USD stablecoins first. This is not just about cross-border utility. It reflects the economic reality that Korea’s savings, investments, and store-of-value preferences are increasingly dollar-denominated. For banks and Big Tech platforms pursuing global remittances and commerce, as well as for Korean consumers whose financial preferences are shifting toward USD assets, the use case for a USD stablecoin is far clearer than for a KRW-based one.

4. Other News

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4.1 Theme 1. Acceleration of Stablecoin Integration into Global Payment Infrastructure

4.1.1 StraitsX partners with UPay to support credit-card-based stablecoin payments

• XUSD is now integrated into UPay’s payment network, enabling usage at 175 million VISA merchants worldwide

• Follows recent partnerships with Grab and Alipay+, accelerating cross-border payments expansion

• UPay combines crypto credit cards, lending, and staking to strengthen tradfi-crypto connectivity

4.1.2 Cross River Bank launches unified stablecoin payment infrastructure

• Integrates fiat and stablecoin flows within a single system, simplifying on/off-chain conversion

• Eliminates the need for prefunding and multiple ledgers while providing bank-grade compliance

• Built to process over 20 trillion dollars annually, targeting core infrastructure for on-chain finance

4.1.3 Wemade launches GAKS alliance to build KRW stablecoin infrastructure

• Collaborating with Chainalysis and CerTiK to enhance threat detection, auditing, and transparency

• Partnering with SentBe to build cross-border stablecoin remittance infrastructure across 174 countries

• Forming one of the largest Korean collaborations for KRW-based on-chain payments and settlement

4.2 Theme 2. Expanding Bank- and Institution-Led Stablecoin Strategies

4.2.1 Ten major European banks launch euro stablecoin project “Qivalis”

• Led by ING, UniCredit, BNP Paribas, and other major European banks in response to U.S. payment dominance

• Executive team includes industry veterans such as the former Coinbase Germany lead

• Targeting launch in late 2026, pending EMI license approval from the Dutch central bank

4.2.2 Swiss AMINA Bank integrates Paxos USDG and joins Global Dollar Network

• Introducing a rewards program offering up to 4 percent annual yield for USDG holders

• Expanding institutional stablecoin portfolio to include USDT, USDC, EURC, and RLUSD

• Strengthening connections with platforms such as Robinhood, Kraken, OKX, and Galaxy

4.2.3 MoonPay secures New York trust charter, enabling institutional expansion

• Gains authority to provide digital asset custody, OTC services, and potentially issue regulated stablecoins

• Authorized to offer trust and custodial services to New York banks and asset managers

• Strengthening B2B infrastructure on top of a 30-million-user customer base and 500-enterprise network

4.3 Theme 3. National Policy Shifts: Integrating Stablecoins into Formal Financial Systems

4.3.1 Israel’s central bank announces stronger stablecoin oversight and digital shekel roadmap

• Stablecoin market reaches 300 billion dollars with monthly transaction volume of 2 trillion dollars

• Regulators concerned that 99 percent of activity is concentrated in Tether and Circle

• Digital shekel roadmap announced for 2026, with formal recommendations due later this year

4.3.2 Bolivia reverses crypto ban and begins integrating stablecoins into financial system

• Banks permitted to offer stablecoin-based deposits, credit cards, and loans as official financial services

• Banco Bisa becomes the first to offer USDT custody, remittances, and cross-border payments

• Part of a broader move across Latin America toward combating currency depreciation and modernizing finance