South Korean banking giant Toss weighs native blockchain and cryptocurrency

Toss, a South Korean payments and banking company, is preparing to develop its own blockchain network and cryptocurrency. The company is considering a Layer 1 mainnet or a Layer 2 network, and the decision remains pending as the Digital Asset Basic Act moves through the legislative process.

The evaluation centers on whether to launch a standalone Layer 1 blockchain with a native token, or to build a Layer 2 network that uses an existing chain to improve speed and lower fees. A person familiar with the planning indicated that no final choice has been made while the company awaits regulatory clarity.

The Digital Asset Basic Act is a broad framework under development in South Korea that is expected to set standards for token issuance, stablecoins, and cryptocurrency exchange-traded funds. Uncertainty over timing has become a planning factor for firms designing new digital-asset products.

With rules still being defined, financial institutions in the country have increased work on Web3 services for existing banking clients. Many of these efforts center on Korean won stablecoins, which policymakers have positioned as a base for digital finance.

Toss has been preparing for this strategy. Last year, the company filed dozens of trademark applications related to stablecoins and began developing a Web3 wallet that will integrate with its mobile app. The contemplated blockchain network would connect with that wallet and support a native cryptocurrency once the regulatory framework is finalized.

The selection between a Layer 1 and a Layer 2 design will depend on how the final rules address network operations, token models, and stablecoin use. Launch timing and structure remain linked to the progress of the Digital Asset Basic Act.