Toss Explores Own Digital Currency Amid Regulatory Delays

• Toss plans a digital currency, weighing Layer 1 vs Layer 2 for its blockchain strategy.
• Regulatory delays are slowing Toss’s digital currency launch and overall rollout timeline.
• Toss aims to build a digital currency ecosystem with stablecoins, wallets, and infrastructure.

South Korea’s fintech company Toss plans to launch its own digital currency. The firm is weighing a native token on a Layer 1 blockchain while also exploring Layer 2 options for faster, more scalable transactions. The plan is still on hold as delays in the Framework Act on Digital Assets slow decision-making.

As per a report, Toss plans to create a full digital asset ecosystem with stablecoins, wallets, and blockchain infrastructure. The company has filed 24 trademarks for Korean Won stablecoins, including ‘TOSSKRW’. 

It is also in talks with major financial firms like KB Financial Group and Samsung Card. A ‘Stablecoin Task Force,’ led by Chief Business Officer Kim Kyu-ha, is overseeing the project.

Layer 1 vs. Layer 2: Strategic Choices

Toss has not yet decided whether to build its own Layer 1 blockchain or use a Layer 2 network on an existing chain. An internal source said, “They are in the process of deciding whether to build Layer 1 directly or proceed with a Layer 2 approach utilizing existing chains.” Experts warn that a global Layer 1 mainnet could cost hundreds of billions of won and take significant time to set up.

A custom Layer 2 network can be developed faster by building on existing blockchains. “It can be implemented by applying tokenization on top of the existing network,” said Yoon Seung-sik, head of Tiger Research Center. 

Professor Hwang Seok-jin from Dongguk University added, “Securing independent infrastructure allows one to directly design service structures, fees, and authorization systems.” Therefore, owning a mainnet gives Toss more control over tokens, apps, and payment services.

Preparing for Web3 Integration

Toss is hiring blockchain experts in areas like wallet design, API development, cryptographic signatures, and transaction verification. The company is also building a Web3 wallet inside the Toss app to make payments and digital asset storage seamless. 

At the same time, Toss is watching regulatory changes closely and exploring partnerships within the crypto ecosystem.

The push comes as South Korea rules on crypto exchanges. The Financial Services Commission now requires near-real-time checks of customer assets and daily public disclosure of balances. 

Meanwhile, Coinbase is reportedly exploring a stake in Coinone, signaling growing international interest in South Korea’s market. Toss’s move reflects both a focus on technology and careful navigation of new regulations.

Related: China Urges Banks and Local Authorities to Use Blockchain For Lending Services