BTQ Technologies will provide the core post-quantum security for South Korea's first bank-led Korean won stablecoin proof-of-concept, the company said Wednesday. The project, run through iM Bank and local tech vendor Finger Inc., aims to embed quantum-resilient cryptography directly into a regulated KRW stablecoin issued on the Kaia mainnet — the Layer 1 network created from the merger of Klaytn and Finschia.
What the pilot covers
The proof-of-concept will deploy BTQ's Quantum Secure Stablecoin Settlement Network (QSSN) across iM Bank's infrastructure. It's designed to test three things: real-time reconciliation between bank reserves and on-chain supply, standardized smart contract design, and connectivity for overseas distribution. BTQ is also providing strategic advisory support across the partnership.
The architecture pairs existing ECDSA cryptography with NIST-aligned post-quantum signatures like ML-DSA. That means the system can keep running today while preparing for the day quantum computers break current encryption — a threat known as harvest-now-decrypt-later.
Why the Kaia chain matters
Kaia Chain ties the pilot to two of Asia's largest digital platforms: Klaytn from Kakao and Finschia from LINE. Klaytn previously participated in the Bank of Korea's CBDC pilot through Project Hangang, so the chain already has a regulatory track record in the country.
Eight Korean banks are advancing plans for a joint venture to issue a KRW stablecoin, signaling competitive build-out of regulated digital won infrastructure ahead of expected legislation. A banking industry official warned that there is a shared sense of crisis that foreign dollar coins could dominate the domestic market, emphasizing the need for independence via a Won-based digital currency.
Not BTQ's first Korea play
BTQ has previously listed Danal and Finger as early QSSN participants in Korea. The iM Bank engagement suggests domestic financial institutions are treating the quantum security risk as actionable rather than theoretical. QSSN was previously cited in the US Post-Quantum Financial Infrastructure Framework as a model design for stablecoin issuance and admin keys.
The next concrete step? The proof-of-concept is expected to run through late 2026, with results informing whether iM Bank moves toward a full launch — and whether other Korean banks follow with quantum-resilient stablecoins of their own.
