KakaoBank, the digital bank of Kakao Group, is taking steps to enter the growing stablecoin market in South Korea, emphasizing the importance of stability and technological competence.
KakaoBank's Plans for Stablecoins
According to local media reports, KakaoBank CFO Kwon Tae-hoon stated that the bank is evaluating various options in the digital finance arena, including issuing digital assets and offering custody services. He noted that work on the project is being conducted in collaboration with Kakao Group's stablecoin task force.
Government Support for the Stablecoin Market
KakaoBank's move coincides with the shaping of a KRW-based stablecoin market supported by newly elected President Lee Jae Myung, who promised to promote a local currency-based stablecoin market to prevent capital outflows. In response, lawmakers have initiated the process of establishing a basic regulatory framework.
KakaoGroup Initiatives in Digital Assets
KakaoPay, the payments arm of Kakao Group, was one of the first to file trademark applications for stablecoin symbols in June, highlighting the active interest of the private sector in new opportunities within digital assets.
KakaoBank is actively preparing to enter the stablecoin market, signaling a rising interest in digital assets in South Korea. The bank's future actions are expected to significantly influence the development of this segment.
