South Korea Picks BTQ for Quantum-Secure Stablecoin Pilot

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South Korea Stablecoin Pilot Picks BTQ for Post-Quantum Security Layer

Show AI Summary
BTQ Technologies Corp. provides post-quantum cryptography security for South Korea’s first bank-led stablecoin proof-of-concept.
The Quantum Secure Stablecoin Settlement Network supplies a PQC-based dual-signature security structure for enhanced protection.
The pilot validates four core components, including real-time reconciliation and global-standard smart contract architecture.

BTQ Technologies, a quantum technology company from Vancouver, has been chosen to provide the main security for South Korea’s first test of a Korean won stablecoin created by banks. The project is a collaboration between BTQ, Korean fintech company Finger Inc., and iM Bank, a commercial bank based in Daegu and part of DGB Financial Group.

BTQ will provide the security technology – its Quantum Secure Stablecoin Settlement Network (QSSN) – for the pilot program, protecting it against future quantum computing threats. BTQ will also offer expert guidance and manage the project’s setup and execution involving all three participating organizations.

This agreement is a major step forward for BTQ, proving their QSSN system is ready for real-world use. For iM Bank and Finger, it’s a firm commitment to strengthening the security of Korean digital currency before the arrival of powerful quantum computers that could compromise existing cryptocurrencies like Bitcoin and Ethereum. And for Kaia, this deal represents a crucial vote of confidence and comes at a particularly important time.

What’s in the Pilot

Per BTQ’s announcement, the proof-of-concept will validate four core components:

  1. Real-time reconciliation between bank reserves and blockchain-issued stablecoin supply
  2. A global-standard smart contract architecture for the won-stablecoin
  3. Connectivity to global infrastructure for overseas distribution
  4. A PQC-based dual-signature security structure layering NIST-standardized ML-DSA signatures alongside existing ECDSA cryptography

The most important part of this system is its use of two types of digital signatures working at the same time. By running both standard (ECDSA) and post-quantum (PQC) signatures, it protects against a future threat where hackers collect encrypted data now and try to unlock it when quantum computers become powerful enough. Importantly, this system lets organizations begin preparing for quantum computing without changing how they currently operate or causing problems with older systems.

As a crypto investor, I was really interested to hear what BTQ’s CEO, Olivier Roussy Newton, had to say about their post-quantum upgrade. It’s not just about swapping out the tech, he explained – it’s about getting everyone on the same page. BTQ isn’t just offering a new security system (QSSN), they’re actively helping to coordinate the whole process between all the different parties involved. They’re offering advice and leadership to make sure this transition to post-quantum security happens smoothly, and that’s a big deal for long-term security.

QSSN was previously recognized by the U.S. Post-Quantum Financial Infrastructure Framework as a leading example of how to build digital money systems that are secure against quantum computers. BTQ has emphasized that the platform is designed to meet the latest standards being developed by QuINSA, an organization focused on quantum technology adoption.

Kaia Losing Major Korean Banks

This announcement is a significant achievement for Kaia, a new blockchain formed in 2024 by combining Klaytn (created by Kakao) and Finschia (LINE’s blockchain). However, the overall market situation is more complex than what’s implied by the partnership with BTQ-iM Bank.

According to a recent report from Bloomingbit, leading financial institutions in South Korea have been consistently selecting blockchain platforms other than Kaia for their stablecoin and Web3 projects in recent weeks.

  • Shinhan Card signed an MoU with the Solana Foundation (the second major Korean institutional Solana partnership in a week alongside K Wave Media’s RWA tokenization deal).
  • Fashion Group Hyungji partnered with Offchain Labs to build payment infrastructure on Arbitrum across 2,000+ stores in South Korea and Singapore.
  • Woori Bank completed its proof-of-concept with BDACS for KRW1, a won-denominated stablecoin built on Avalanche.
  • Kakao Pay, a member of Kaia’s own Governance Council, is reportedly exploring the Maru project led by Hashed as an alternative consortium model.

Recent market data indicates a significant decline in Kaia’s value. As of May 2026, the total value locked in the platform is around $12.5 million, a substantial drop from $104.37 million in August 2025. The KAIA token is currently trading at 69 won on Coinone, down about 98% from its peak of 5,049 won in April 2021 before the merger.

Looking at the current situation, the iM Bank–Finger–BTQ project offers Kaia a different perspective. It’s encouraging to see this coming not from a major national bank, but from a regional bank connected to DGB Financial Group, and a fintech company, Finger, that BTQ has been collaborating with for quite some time – at least since October 2025, as far as we can tell.

Why iM Bank, Not the Eight-Bank Consortium

The competition to launch a stablecoin in South Korea is quite divided. As reported in June 2025, a leading effort involves eight banks – KB Kookmin, Shinhan, Woori, Nonghyup, IBK, Suhyup, Citibank Korea, and SC First Bank – working together to create a won-based stablecoin. KB Kookmin bank, on its own, has applied to trademark 17 different stablecoin names, including KBKRW and KRWKB.

The original plan for a unified group has broken down into smaller partnerships, and iM Bank is now part of a different one. Reports show that Hana Financial Group, BNK Financial, iM Bank, and SC First Bank are creating their own KRW stablecoin system. This means iM Bank’s collaboration with BTQ-QSSN is a separate project from what the larger group of eight banks will develop.

From an editorial perspective, this is important. While the BTQ press release highlights this as South Korea’s first bank-led test of a Korean won stablecoin, that claim is technically accurate—it’s the first such test using post-quantum cryptography within Korean banking. However, it’s not the only Korean bank exploring stablecoins, and other projects are taking different approaches to blockchain technology and security.

The PoC’s Provenance: October 2025 Foundations

The iM Bank news isn’t a new development; it’s a continuation of work BTQ has been doing in Korea since 2025 or earlier.

As we’ve previously reported, Finger Inc. became involved in our QSSN pilot program back in October 2025, alongside Danal. The program has been moving from initial testing towards full commercial launch, following the guidelines of QuINSA and PQFIF. So, the announcement on May 6th really represents iM Bank joining a partnership that Finger and BTQ have been building together for at least seven months now.

This progress is important because it shows the partnership between BTQ and Finger is leading to real sales with established companies—Danal and now iM Bank—and isn’t just a small-scale test. For BTQ investors, this proves their QSSN technology is transitioning from testing and development to actual business deals.

The Quantum Backdrop

The news comes as discussions about protecting financial systems from the threat of quantum computers are gaining momentum. As recently reported by TCT in a statement from Coinbase, Coinbase is actively working to update its systems for a future where quantum computers pose a risk. Over the past year, institutional clients have moved from questioning whether this threat is even real, to focusing on who will be responsible for security – the technology protocols, the companies holding digital assets, or the clients themselves.

As an analyst, I’m observing a similar trend happening within Korea’s financial infrastructure. The Bank of Korea has already been exploring CBDCs, including Klaytn in its pilot programs and continuing development through Project Hangang. The iM Bank Proof-of-Concept builds on this existing work, but what really sets it apart is that it’s the first Korean stablecoin PoC to publicly announce it’s built with post-quantum security measures – a significant step towards future-proofing the technology.

With iM Bank’s recent announcement regarding its stablecoin, it’s now being asked whether other Korean stablecoin developers – like those at KakaoBank, the group of eight banks, and BDACS on Avalanche – should also prioritize security against future quantum computing threats from the start. Alternatively, could a two-signature system become the standard if BTQ’s initial testing demonstrates it works well in practice?

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2026-05-06 15:33