South Korean Banks Experience Stock Surge Amid Stablecoin Trademark Filings
According to Cointelegraph, major South Korean banks have seen a significant rise in their stock prices following the filing of trademarks for stablecoins, indicating a growing institutional interest in digital assets. Data from Google Finance reveals that at least three banks in South Korea, which recently applied for Korean won stablecoin trademarks, experienced stock price increases ranging from 10% to nearly 20%. This market reaction reflects investor optimism regarding the banks' potential entry into the cryptocurrency sector.
The trademark filings occurred shortly after the inauguration of South Korea's 21st president, Lee Jae-myung, on June 4. His campaign included promises favorable to the cryptocurrency industry, such as the development of a Korean won-pegged stablecoin. Data from the World Intellectual Property Organization (WIPO) indicates that Kakao Bank filed for stablecoin-related trademarks on June 23. According to South Korean media platform Industry News, the company filed for at least 12 crypto-related trademarks. Following this, Kakao Bank's stock price surged from 31,000 won ($22.6) to 37,000 won ($27), marking a 19.3% increase.
Similarly, Kookmin Bank, a subsidiary of KB Financial Group, filed for stablecoin-related trademarks on June 23. The group's shares experienced a modest initial gain, with the stock price rising from 107,600 won ($78) to 112,300 won ($82) on June 24, a 4.3% increase. Since the filing, Kookmin Bank's stock price has continued to rise, reaching 122,000 won ($89), up 13.38%. On June 27, the Industrial Bank of Korea also filed for stablecoin trademarks, resulting in an uptick in its shares. The bank's stock currently trades at 20,150 won ($14.7), up 10.1% from its previous price of 18,300 won ($13.3).
Cointelegraph reached out to Kakao Bank, Kookmin Bank, and the Industrial Bank of Korea for further information on their stablecoin plans but did not receive any responses by the time of publication. Other major banks in South Korea have also expressed interest in collaborating to launch a stablecoin pegged to the national currency. However, a researcher known as 100y from the crypto research company Four Pillars commented on X that South Korea is currently experiencing a "stablecoin bubble." Despite the absence of clear regulatory guidelines, banks are capitalizing on the stablecoin trend, benefiting from increased stock prices following their trademark filings. The researcher noted that the lack of regulatory clarity creates uncertainty about the long-term viability of these stablecoin initiatives.
