In a significant development for the Korean digital finance landscape, SOOHO.IO has introduced Project Namsan, a groundbreaking consortium initiative aimed at establishing a stablecoin ecosystem for the Korean won. This initiative aligns with the growing trend toward digital currencies and involves a collaboration with Chainlink, a leading provider of decentralized oracle solutions and blockchain infrastructure.
The project has initiated its first use case by conducting a live pilot program specifically designed for foreign tourists. Participants in this pilot were able to deposit USD-based stablecoins and receive KRW-denominated digital vouchers, enabling them to make payments at a cost that is over 30% lower than traditional foreign exchange channels. This pilot emphasizes the potential for reduced transaction fees and increased efficiency in currency exchange, which could revolutionize how tourists interact with the financial system in Korea.
This initiative builds on a strategic partnership formed in 2024 between SOOHO.IO and Chainlink, focusing on the development of tokenized asset use cases and central bank digital currencies (CBDCs) across Asia. SOOHO.IO has also been involved in prior projects with the Bank of Korea, particularly around Purpose Bound Money (PBM), which allows for programmable controls over how stablecoins are utilized.
The technical backbone of Project Namsan is powered by the Chainlink Cross-Chain Interoperability Protocol (CCIP), which links multiple public and private blockchains. Chainlink’s Proof of Reserve technology continuously verifies the reserves of stablecoins, ensuring that KRW vouchers are issued only following validated stablecoin settlements. This establishes a Delivery-vs-Payment (DvP) model, promoting a transparent and trustworthy foreign exchange process. CCIP was chosen for its robust security framework, leveraging Chainlink’s decentralized oracle network that secures over $100 billion in decentralized finance (DeFi) total value locked.
The pilot, which has been running since July, includes collaboration with public enterprises such as Grand Korea Leisure (GKL), which operates the foreign-only casino ‘Seven Luck.’ GKL attracts approximately 1.5 million international visitors yearly and has branches in prominent tourist areas, including the bustling Gangnam district.
Jisu Park, CEO of SOOHO.IO, described the collaboration with Chainlink as a significant achievement that underscores their technology’s recognition on a global scale. He emphasized their commitment to being a reliable partner in clearing and settlement services, facilitating the safe use and distribution of stablecoins across the Asia-Pacific region.
Niki Ariyasinghe, the Head of Business Development for Asia-Pacific and the Middle East at Chainlink Labs, highlighted the overarching importance of this collaboration in enhancing security and transparency within the Korean stablecoin foreign exchange markets. By fostering interoperability across different blockchain platforms and ensuring verifiable reserve data, the project aims to seamlessly integrate stablecoins into Korea’s broader financial ecosystem.
As the world continues to evolve towards digital assets, the ramifications of Project Namsan could position South Korea at the forefront of the stablecoin movement, promising innovative financial services and paving the way for enhanced accessibility and efficiency in transactions.
