Toss Teams Up with Optimism to Develop Korean Won Stablecoin

Toss, a popular mobile money transfer app in South Korea, has partnered with blockchain company Optimism to develop a Korean won-based stablecoin. The three-month proof of concept (PoC) will explore whether financial institutions can control the settlement process, implement know-your-customer (KYC) and anti-money laundering (AML) verification requirements, and ensure transactions remain private on a public blockchain ledger.

The PoC will utilize Optimism's OP Stack and Sunnyside Labs' Privacy Boost protocol. Toss plans to build compliant stablecoin-based payment infrastructure in the country using the results of this pilot project.

This initiative follows similar efforts from other large financial institutions in South Korea, including Shinhan Card and Visa, which have tested stablecoin payments and non-custodial wallets.