LG CNS, the lead contractor on the Bank of Korea's digital currency platform known as Project Hangang, has announced a partnership with Chainlink to bolster won-pegged stablecoins and digital asset infrastructure for institutions in South Korea, the two companies said Thursday in a joint announcement.

Under the agreement, LG CNS, the IT services arm of LG Group, will incorporate Chainlink's cross-chain, data and orchestration infrastructure into its Digital Asset Platform Solution for Korean institutions. The companies said the setup connects blockchain networks with institutional systems, and the pair will jointly develop oracle, interoperability and cross-chain standards aligned with the rules facing Korean institutions. The deal ties together two strands of Korea's digital asset push: the central bank-led digital currency project and the private-sector stablecoin infrastructure LG CNS is building for institutions.

More Than 11 Million Eligible Users

The companies estimate the won stablecoin segment at more than 11 million eligible users, within a Korean digital asset market they value at $68 billion.

LG CNS builds, operates and expands South Korea's digital currency infrastructure as lead contractor on Project Hangang. The project's first phase involved roughly 80,000 customers across seven Korean banks. That gives LG CNS a dual role in the country's digital currency landscape — building the central bank's pilot infrastructure while supplying the commercial platform Korean institutions would use for won-linked assets. Cryptopolitan also reported that LG CNS has selected Injective to trade receivables tied to cross-border business.

Chainlink operates a decentralized oracle network for smart contracts, connecting disparate blockchains and feeding them with outside data. That bridging function — delivering off-chain data and cross-chain connectivity — is the layer stablecoin and tokenized-asset systems rely on to operate across both public blockchains and regulated institutional systems.

"By combining LG CNS's institutional expertise with Chainlink's technology standards, this partnership establishes the foundation for compliant digital asset infrastructure in Korea," said Johann Eid, chief business officer at Chainlink Labs.

Regulatory Gap Persists

South Korea does not yet have a clear legal basis for the commercial issuance and trading of won-linked stablecoins. Lawmakers are working on the Digital Asset Basic Act, which would lay down rules for won stablecoins and other parts of the sector. According to Cryptopolitan, the bill is in the final stage of government review and is headed for legislative discussion in November 2026. For the partnership, that timeline is the detail to watch: the joint standards the two companies plan to develop are meant to align with a regulatory framework that has yet to be finalized.

Seoul is also experimenting with bank-issued tokens. Cryptopolitan previously covered a South Korean deposit token pilot that would replace government purchase cards with deposit tokens created by commercial banks.

Targeting Tokenized Securities

South Korea has the second-largest digital asset market in Asia, with the won ranking second in crypto trading volume after the US dollar, according to Chainlink. Cryptopolitan's coverage of the Injective and BDACS won stablecoin deal found that dollar-pegged tokens account for over 98% of the market, and that Korea's top five exchanges recorded net stablecoin outflows of about $10.4 billion across 18 consecutive months. Those figures sketch the market the partnership enters: a stablecoin landscape overwhelmingly dollar-denominated — with all non-dollar tokens together accounting for less than 2% — and exchanges that have registered sustained net stablecoin outflows.

"Korea's financial infrastructure is entering the tokenization era," said Hongkeun Kim, executive vice president and head of LG CNS's digital business division. He added that the two companies plan to accelerate the growth of Korea's tokenized securities market.

LG Group comprises 63 affiliates with combined assets of 186 trillion won ($140.4 billion), and its subsidiaries are worth more than $100 billion in aggregate market value.