South Korean Bank Stocks Surge Following Stablecoin Trademark Filings

After a wave of stablecoin trademark filings, shares of multiple South Korean banks have surged in the past two weeks. The filings are considered a bold step by the country’s top financial institutions towards integrating blockchain-based digital assets. This signals a rising institutional interest in cryptocurrency markets.

At least three of the major banks in the country have filed for trademarks associated with Korean won-pegged stablecoins. These banks include Kookmin Bank, the Industrial Bank of Korea, and Kakao Bank. According to the data taken from Google Finance, the filings were followed by major stock price increases ranging from 10% to almost 20%. This reflects the growing investor confidence in the bank’s turn to digital finance.

South Korean Banks File for Stablecoin Trademarks

This news comes weeks after President Lee Jae-myung’s inauguration on June 4. His administration has voiced support for blockchain innovation and the development of a national stablecoin, a position that appears to have catalyzed this wave of activity in the traditional banking sector.

Kakao Bank was among the first to act, filing at least 12 crypto-related trademarks on June 23, according to the World Intellectual Property Organization (WIPO). Its stock jumped from $22.60 to $27 within a day, a 19.3% gain.

Kookmin Bank, a major subsidiary of KB Financial Group, also filed on June 23. The next day, its shares went up 4.3%, from $78 to $82. Since the filing, Kookmin shares have progressively gone up, and they are currently worth $89, which is a 13.38% increase.

On June 27, the Industrial Bank of Korea also applied for trademarks for stablecoins. Its shares climbed from $13.30 to $14.70, a 10.1% increase, as investor interest continued to swell.

While these developments have excited markets, they have also sparked caution. 100y, a lead researcher at crypto analysis firm Four Pillars, described the trend as a “stablecoin bubble” in a post on X (formerly Twitter). The analysts warned that the lack of a clear regulatory framework for stablecoins in South Korea raises concerns about the long-term sustainability of these initiatives.

“Banks are rushing in to ride the wave,” 100y wrote, “but without strong regulatory clarity, the sector risks overheating and disappointing investors in the long run.”

Despite these concerns, more banks are reportedly exploring collaborative efforts to launch a national stablecoin. Cointelegraph asked Kakao Bank, Kookmin Bank, and the Industrial Bank of Korea for comments on their stablecoin plans, but they hadn't heard back by the time this article was published.

The rise in stock prices shows that investors are excited about digital finance in South Korea and that institutions are getting behind it. As rules change, the country might become a big player in the global stablecoin economy, or it could run into problems if the current excitement doesn't last.