Naver Financial plans to launch 'Silk Pocket' stablecoin wallet service

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Naver Financial, the South Korean internet giant, has officially announced plans to launch a stablecoin wallet service next month. The company is developing it in collaboration with the blockchain investment firm Hashed.

The wallet is dubbed “Silk Pocket.” In addition to Naver Financial and Hashed, the Busan digital exchange has also contributed to its development. It is specially made for Busan citizens. According to reports, it has completed the first version of development and is undergoing final verification for its launch next month.

The KRW-stablecoin exchange feature is set to go international

The project commenced development in May. Hashed will provide technical support in collaboration with the Busan digital asset exchange. On the other hand, Naver Financial, which possesses the payment infrastructure, will be responsible for wallet activation. 

The KRW-stablecoin wallet is expected to be popular among international tourists. It will enable them to easily convert their local currency into KRW-pegged stablecoins for payment simply by depositing it into their wallets. This will eliminate the need for separate currency exchange procedures or fees.

Once stablecoins are legally recognized, these institutions also plan to integrate Silk Pocket with a feature that allows users to exchange local fiat currencies for “Dongbaekjeon instantly.” 

Dongbaekjeon is an existing regional currency payment system, currently operating like a credit card that offers cashback benefits to residents. The Busan city government launched the original program to protect and revitalize local commerce and economy by promoting spending.

BNK Busan Bank, which issues Dongbaekjeon, has already begun researching how to convert Dongbaekjeon from a prepaid card or points system into a stablecoin. 

Dongbaekjeon already boasts 1.5 million monthly active users (MAU) in the Naver Pay stablecoin payment ecosystem. Naver Financial stated, “We are also planning integration with our existing digital asset wallet, ‘Naver Pay Wallet.'”

More details of the service are expected to be revealed at “Blockchain Week in Busan (BWB) 2025,” which will be held in Busan on February 22, 2025. Hashed CEO Kim Seo-jun will be presenting at the event, while Naver Financial CEO Park Sang-jin is considering attending.

Naver Financial and Dunamu merger to be announced this week

Besides the stablecoin plans, Naver Financial and Dunamu, Upbit’s parent company, are scheduled to hold board meetings on November 26 to vote on the merger proposal between them. On November 27, Naver Chairman Lee Hae-jin and Dunamu Chairman Song Chi-hyung will hold a joint press conference at Naver’s second headquarters, “Naver 1784,” to directly announce the merger plan.

As reported by Cryptopolitan, the merger between the two companies is expected to proceed through a comprehensive stock exchange method. Dunamu shareholders will exchange their shares for new Naver Financial shares, with the merger exchange ratio  favoring 1 to 3. 

Once the acquisition is finalized, Song Chi-hyung, chairman of Dunamu, will become the largest shareholder by securing about 28% of the integrated corporation. Naver (70% of Naver Financial), the previous largest shareholder, will be diluted to 17%, falling to the second largest shareholder.

Market participants expect the combined entity to pursue a listing on the Nasdaq exchange. This could unlock a valuation of at least $34.5 billion (50 trillion won) if its stablecoin and blockchain infrastructure attract global investor interest.

Meanwhile, Naver reported a revenue of 3.14 trillion Korean won ($2.32 billion) and an operating profit of 570.6 billion won ($422.67 million) in the third quarter. 

On the other hand, Dunamu reported a 35% quarter-over-quarter revenue growth, with 385.9 billion won ($262.87 million) in revenue for the third quarter. Meanwhile, its net profit rose 145% during the same period, reaching 239 billion won ($162.80 million).

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