KakaoBank, a South Korean digital bank, aims to solidify its presence in the stablecoin market, exploring various entry strategies, including a potential won-pegged stablecoin.
Plans for a Stablecoin
KakaoBank's Chief Financial Officer Kwon Tae-hoon confirmed that the bank is evaluating a range of possibilities related to stablecoins, including issuance and digital asset custody services. During the first-half 2025 earnings call, he stated the bank is "reviewing various methods such as issuance and custody" and aims to "actively participate" in the digital asset space.
Involvement in Central Bank Experiment
KakaoBank has also participated in the Bank of Korea’s central bank digital currency (CBDC) experiment, successfully conducting wallet creation, asset exchange, and remittance trials. Kwon noted that this experience provides the bank with both the technological and regulatory know-how needed to enter the stablecoin sector.
Developments in South Korea's Stablecoin Market
KakaoBank’s announcement comes as stablecoins gain momentum in South Korea amid regulatory changes supported by new President Lee Jae-myung. Since his election in June, he has openly backed cryptocurrency innovation and legislative efforts to legalize the issuance of stablecoins pegged to the Korean won.
KakaoBank stands at the brink of significant changes in its business, closely monitoring the development of the stablecoin market in South Korea, reflecting a broader global interest in digital currencies.
