Toss, Optimism and Sunnyside Labs test won stablecoin

A major South Korean financial technology company has partnered with a blockchain network and a privacy technology developer to explore the use of a digital Korean won for payments. Viva Republica, the operator of the popular Toss app, signed a memorandum of understanding on July 8 with Optimism, an Ethereum-based scaling network, and Sunnyside Labs to launch a three-month proof-of-concept project.

The initiative will test a Korean won-pegged stablecoin built on Optimism's OP Stack technology, with Sunnyside Labs providing its Privacy Boost protocol to address compliance and data protection requirements. The goal is to evaluate whether blockchain infrastructure can support institutional-grade payment systems that meet South Korea's stringent financial regulations, including know-your-customer and anti-money laundering rules.

Toss, which serves approximately 30 million users and connects to over 500,000 merchants, aims to assess how such technology could be integrated into its existing financial ecosystem. The proof-of-concept will specifically examine whether financial institutions can maintain control over settlement processes, implement necessary regulatory safeguards, and...