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Early Move for 'Dollar Coin'… Toss Bank Files Trademark Applications for Stablecoin 'USD'

[비즈한국] It has been confirmed that Toss Bank, which had previously filed a large number of trademark applications related to KRW-pegged stablecoins, has now filed applications related to the US dollar (USD). This move appears to be a preemptive step to prepare for the introduction of dollar-based coins as the US pushes for the legalization of stablecoins. Recently, financial firms including banks, card companies, and securities firms have shown interest in issuing KRW stablecoins regardless of their business sector, drawing attention to the feasibility and future prospects of such initiatives.

It was confirmed on the 17th that Toss Bank filed 54 trademark applications combining 'USD', representing the US dollar, with 'Toss Bank'. According to the Korean Intellectual Property Office's KIPRIS database, the applied-for trademarks include 'USDTBNK', 'USDTS', 'USDTB', 'TBNKUSD', and 'TSBKUSD', with most being combinations of 'TS' for Toss and 'USD'. Some combinations with the letter 'K', such as 'USDK' or 'KUSD', were also included.

Recently, domestic financial firms and fintech companies have been rushing to file for stablecoin tickers (abbreviations) that combine their company names with 'KRW'. A stablecoin is a virtual asset that maintains a 1-to-1 value peg with real-world assets like fiat currency. Toss Bank also filed a bulk of trademark applications related to KRW stablecoins, including 'KRWTBK', 'KRWTB', 'TSKRW', and 'TSBKRW', on June 26.

Toss Bank registered its KRW trademark applications under product classes 09, 35, 36, and 42; the 52 USD-related trademarks filed on the 17th were registered under the same classes. The designated goods include cryptocurrency financial trading, token issuance and redemption, cryptocurrency electronic fund transfers, and agency services for downloadable electronic wallets.

This trademark filing suggests that Toss Bank is taking preemptive steps with the consideration of issuing stablecoins linked to the US dollar, following its move regarding the Korean won. A Toss Bank official stated, "We are closely monitoring market conditions and nothing has been decided yet," adding, "We plan to review the overall situation and make a decision later."

In the current stablecoin market, most coins are pegged to the value of the US dollar. The leading stablecoins are 'Tether (USDT)' and 'USD Coin (USDC)', which hold market shares of approximately 66% and 28%, respectively. To ensure asset stability, Tether and USD Coin maintain reserves in US Treasuries or cash dollars.

The timing of Toss Bank’s USD-related trademark filings is also drawing attention. This follows the recent passage of the 'GENIUS Act' in the United States, a bill that brings stablecoins into the institutional fold. The core of the bill is to define payment stablecoins as financial assets while regulating issuers to comply with anti-money laundering laws and maintain reserves such as US dollars and Treasury bonds.

The GENIUS Act passed the US Senate in June, the House of Representatives on July 17 (local time), and was officially enacted after President Donald Trump signed it on the 18th. With the US recognizing stablecoins as legal assets for the first time, paths have opened for their use in the real economy, including finance and retail. In the aftermath, the stablecoin market has been volatile, with the circulation of Tether and USD Coin surging in July.

Analysts suggest the bill will significantly increase the circulation of US dollar-based stablecoins. Lee Byung-kwan, a senior researcher at the Korea Institute of Finance, stated in his July 19 report, "Implications of the US Move Toward Full-Scale Stablecoin Issuance," that "The implementation of the GENIUS Act is expected to lead to changes in the stablecoin landscape, the expansion of the US dollar's influence, and the development of decentralized finance," adding, "We expect the circulation of stablecoins backed by the US dollar to increase rapidly. With the expansion of stablecoin circulation, demand and supply for financial services on the blockchain will also grow."

However, since even the issuance of KRW-pegged coins remains difficult domestically, it will not be easy for domestic issuers to launch stablecoins linked to the US dollar. In fact, the Bank of Korea is concerned about the growing influence of dollar stablecoins. Governor Rhee Chang-yong remarked at a European Central Bank forum in Portugal on the 1st (local time) that "If KRW stablecoins are permitted, it could accelerate the exchange into US dollar-based stablecoins, weakening the management of capital flows," noting that "It would make the conversion from KRW coins to dollar coins easier, leading to greater usage of dollar coins."

Foreign issuers also face difficulties circulating in the US market. According to the GENIUS Act, foreign issuers' stablecoins are, in principle, prohibited from distribution, trading, or listing within the US. To obtain approval, they must meet strict conditions such as holding reserves in US financial institutions and being subject to supervision.

Meanwhile, as Toss Bank's trademark applications include 'USDT', which is the same as Tether's ticker, there is interest in whether registration will be possible. Toss Bank commented, "It is difficult to determine the possibility of registration. We are waiting for the examination results."