BTQ Technologies has been tapped as the core security infrastructure provider for South Korea's first bank-led proof-of-concept for a Korean Won stablecoin. The initiative, led by iM Bank, a major commercial lender, will run on the Kaia public Layer-1 blockchain. It marks the first time a Korean bank has formally moved a KRW-denominated stablecoin to a public chain in a structured pilot environment.
The iM Bank-led initiative
IM Bank is using BTQ's Quantum Secure Stablecoin Network (QSSN) for the test. QSSN is deployed on Kaia, a public blockchain formed from the merger of Kakao's Klaytn and LINE's Finschia. Kaia offers one-second block times and instant finality — features designed for institutional stablecoin settlement. Multiple Tier-1 banks in South Korea are running parallel PoCs on other chains, including Solana, Avalanche, and GIWA Chain, but this is the first bank-led effort on a public Layer-1 for a won stablecoin.
Quantum security on a public Layer-1
BTQ's QSSN uses ML-DSA post-quantum cryptography within the ERC-4337 account abstraction standard. That gives quantum-safe smart account wallets for EVM-compatible networks. The choice of a public chain rather than a permissioned ledger is notable — it signals a shift toward open infrastructure for regulated stablecoin issuance, at least in a test setting.
South Korea's stablecoin regulatory backdrop
South Korea's Digital Asset Basic Act is expected to move through the legislative process in 2026. If passed, it would authorize domestic issuance of KRW-backed stablecoins for the first time after nearly nine years of prohibition. That ban has driven capital outflows: roughly $40 billion flowed out of South Korean exchanges into foreign dollar-backed stablecoins in Q1 2025 alone. The iM Bank PoC looks like a dry run for what could come next.
BTQ's previous deployments
This isn't BTQ's first QSSN deployment in Korea. The company previously worked with Danal, a mobile carrier billing provider, and Finger Inc. Group, a banking-solutions developer. The iM Bank contract, however, is the highest-profile test yet — a real bank leading a real stablecoin project on a public chain.
The legislative calendar for the Digital Asset Basic Act is the next concrete milestone. If the bill passes, the iM Bank PoC could serve as a template for how Korean won stablecoins actually launch. If it stalls, the proof-of-concept will remain just that.
