The Bank of Korea and the Bank for International Settlements have warned that the rapid introduction of stablecoins could create a massive coin withdrawal crisis, leading to financial market instability and foreign exchange market shock.

The central bank on Wednesday released its financial stability report for the first half of 2025, which said that if trust in stablecoins’ value, stability and reserve assets are damaged, it could lead to depegging and large-scale repayment demands, resulting in a so-called coin run.

Stablecoins, a type of cryptocurrency designed to maintain a constant value, are typically pegged to the U.S. dollar one to one.

Concerns about stablecoins have risen as they are quickly being adopted at home and abroad, with companies in the banking, fintech and game industries all applying for trademark rights to establish a foothold in the market.

KB Kookmin Bank, KakaoBank, Kakao Pay, and Nexus are just some of the companies that have applied for trademarks in South Korea for the names of proposed stablecoins.

The local banking sector is also planning a business model in which banks form a consortium and establish joint ventures to issue stablecoins.