KakaoBank, a leading internet-only bank in South Korea, has unveiled plans to enter the stablecoin market in response to changing legislation.
KakaoBank and New Initiatives in Stablecoins
KakaoBank's CFO, Kwon Tae-hoon, announced the development of stablecoins during its first-half 2025 earnings call. He stated that the bank is reviewing various methods, such as issuance and custody, and intends to actively participate in the emerging digital asset ecosystem.
Competition in the Stablecoin Market in South Korea
On June 23, KakaoBank filed for multiple trademarks related to stablecoin services, coinciding with filings from its competitor, Kookmin Bank. In total, eight major South Korean banks aim to launch Korean won-pegged stablecoins by 2026, indicating a shift towards blockchain-based financial products.
Global Trends in Stablecoin Usage
KakaoBank's initiative aligns with broader international trends towards stablecoin adoption. A May 2025 report by Fireblocks revealed that 90% of surveyed institutional entities are exploring stablecoin usage. Increasingly, governments and financial institutions around the world see stablecoins as viable tools for payments and settlements.
KakaoBank is entering a new era of digital assets, adapting to legislative changes and increasing competition, which may positively impact the development of the financial sector in South Korea.
