The stock prices of major South Korean banks surged significantly after submitting trademark applications for stablecoins, demonstrating increasing institutional interest in digital assets.

According to Google Finance, at least three South Korean banks that recently applied for trademarks for won-pegged stablecoins saw their stock prices rise by 10% to nearly 20%. This market reaction indicates that investors are optimistic about the potential for banks to enter the cryptocurrency space.

This type of application was submitted shortly after Lee Jae-myung was inaugurated as the 21st president of South Korea on June 4. His campaign promises included the development of a stablecoin pegged to the Korean won.

South Korean bank stocks rise due to the stablecoin craze

According to data from the World Intellectual Property Organization, Kakao Bank submitted a trademark application related to stablecoins on June 23. Korean media reported that Kakao Bank has applied for at least 12 trademarks related to cryptocurrency. The following day, the company's stock price jumped from 31,000 won ($22.6) to 37,000 won ($27), an increase of 19.3%.

Researchers claim South Korea is facing a 'stablecoin bubble'

The research director of the cryptocurrency research firm Four Pillars stated that despite a lack of clear rules, banks are rushing into the stablecoin craze and benefiting from rising stock prices after submitting stablecoin trademark applications. However, South Korea lacks clear regulatory guidance on stablecoins, which brings uncertainty to long-term sustainability.