- KakaoBank’s entry into the stablecoin sector by 2025.
- Strategic partnership with Kakao Group entities.
- Focus on KRW-backed transactions in South Korea.
KakaoBank, South Korea’s leading digital bank, plans to actively enter the KRW-backed stablecoin market by 2025, leveraging its digital finance expertise and regulatory infrastructure.
The move is set to enhance KRW-based payments and reduce speculative trading risks, potentially reshaping digital finance dynamics in South Korea.
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KakaoBank, South Korea’s largest digital bank, confirms a move to enter the KRW-backed stablecoin market by 2025. Leveraging its regulatory framework and collaborations, the initiative is expected to bolster its digital asset ecosystem. KakaoBank’s Chief Financial Officer, Tae-Hoon Kwon, announced the strategic direction, emphasizing coordination with Kakao Group’s entities. The bank’s previous success in digital finance and participation in blockchain projects underpins its capabilities.
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The anticipated stablecoin aims to streamline KRW-based payments and remittances, reducing risks while enhancing utility beyond speculative trading. KakaoBank’s robust financial state, marked by a $254 million profit in the first half of 2025, provides a solid foundation for this venture. South Korea’s government reportedly supports local stablecoin projects, seeing them as tools to prevent capital flight and enhance the country’s digital finance strength.
South Korean President, “We support local stablecoin initiatives as a measure to combat capital flight and strengthen digital finance sovereignty”.
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KakaoBank’s entry into the KRW-backed stablecoin market is a strategically coordinated move involving a track record in digital asset compliance and CBDC experiments. Potential on-chain liquidity and transaction changes could emerge from this development. Historical involvement in CBDC trials highlights KakaoBank’s expertise in digital asset management, positioning it as a key player in Korea’s blockchain finance narrative. The integration of a KRW-backed stablecoin may attract local decentralized exchanges, reducing reliance on global stablecoins like USDT and USDC within domestic markets.
