Naver to Launch Stablecoin Wallet in Partnership with Hashed and BDAN

Naver to Launch Stablecoin Wallet in Partnership with Hashed and BDAN

Naver Financial, the financial technology division of South Korea’s major internet firm Naver, is set to introduce a stablecoin wallet in Busan. This initiative is part of the city’s effort to create a blockchain-supported local economy.

Key Takeaways:

Naver is launching a stablecoin wallet in Busan to digitize the Dongbaek-jeon currency.
The service aims to optimize payments for 1.5 million monthly users, leveraging infrastructure from Hashed and BDAN.
The complete launch depends on the forthcoming regulations governing local-currency stablecoins in South Korea.

A report by Seoul Economic Daily reveals that Naver has completed the wallet's development, which is currently undergoing final assessments ahead of its launch next month.

This project is being developed in collaboration with venture capital firm Hashed and the Busan Digital Asset Exchange (BDAN), which plays a crucial role in Busan's broader digital asset strategy.

Dongbaek-jeon Transforms into Digital Currency

The new service will allow residents and visitors of Busan to convert their local fiat currencies into a stablecoin version of Dongbaek-jeon, the city’s regional currency.

Currently, Dongbaek-jeon is issued as a prepaid payment card that offers cashback incentives aimed at enhancing spending at local businesses.

The program was initiated by Busan’s government to assist merchants facing increasing operational challenges, attracting an average of 1.5 million users monthly.

BNK Busan Bank, which issues Dongbaek-jeon, is exploring a shift from its current point-based system to a fully stablecoin-backed model.

This transition would modernize the issuance process, potentially enabling real-time settlement within the city’s payments network.

Naver Financial intends to link the new wallet with its existing Naver Pay Wallet, which already facilitates crypto custody services.

However, full access to wallet functionalities may be limited until South Korea establishes comprehensive regulations for local-currency stablecoins, an oversight that has impeded similar initiatives across the nation.

Development of the wallet began in May, with Hashed and BDAN providing the necessary blockchain infrastructure, while Naver worked on integrating the wallet into its established payment system.

This project coincides with Naver reportedly moving towards a merger with Dunamu, the operator of Upbit, which is South Korea’s largest cryptocurrency exchange.

Reports indicate that both companies are negotiating a stock-swap deal to place Dunamu under Naver’s management in preparation for a potential listing on Nasdaq.

In its third-quarter report, Naver announced revenue of 3.14 trillion Korean won (roughly $2.32 billion) and an operating profit of 570.6 billion won ($422.6 million).

Dunamu also posted impressive results, with revenues of 385.9 billion won ($262.9 million), an increase of 35% from the previous quarter, and net profit soaring 145% to 239 billion won ($162.8 million).

South Korean Investors Invest $1.24 Billion in US Tech and Crypto Stocks

Recently, it was reported that South Korean investors leveraged the Chuseok holiday to engage in high-risk trading, investing $1.24 billion in US tech and cryptocurrency-related assets while the local markets were closed from October 3 to October 9.

This surge in investment was driven by leveraged ETFs and high-growth stocks as traders aimed to capitalize on Wall Street’s positive momentum and optimism around US tech resilience along with domestic stimulus expectations.

Notable foreign purchases included $151 million in the Direxion Daily Tesla Bull 2X ETF, along with other investments of $105 million in Iris Energy, $100 million in Meta Platforms, and $96 million in Tesla.

Investors also acquired $95 million worth of the T-REX 2X Long BMNR Daily Target ETF, which has double exposure to BitMine Immersion Technologies, highlighting the increasing interest in crypto-related equities.