Kakao Pay is making significant steps toward launching a Korean won-backed stablecoin by filing trademark applications and preparing for new regulatory compliance.
Kakao Pay's Trademark Applications
Kakao Pay recently filed 18 trademark applications with the Korean Intellectual Property Office. The applications include combinations of the letters 'K' and 'P' alongside 'KRW,' such as 'KRWKP,' 'KWRP,' and 'KPKRW,' covering services related to virtual asset financial transactions, electronic transfers, and brokerage activities.
Regulation of Stablecoins in South Korea
The Digital Asset Basic Act in South Korea allows private entities to issue won-backed stablecoins, increasing market competition. Nexon subsidiary Nexth is also aiming to become the first issuer of a won stablecoin.
Prospects of Stablecoin Launch
Kakao Pay is in the early stages of preparing for the release of a stablecoin, aiming to establish a strong brand that integrates the Korean won and its corporate identity. The entry of major players like Kakao and Nexth is expected to intensify competition in the Korean stablecoin market.
These steps underline the importance of regulatory changes for digital assets in South Korea and the potential for accelerated adoption of stablecoins backed by the national currency.
