KakaoBank, South Korea's leading digital bank, is actively preparing to enter the stablecoin market amid a new regulatory framework for cryptocurrencies.
KakaoBank's Approaches to Stablecoins
KakaoBank aims to offer services related to the issuance and custody of stablecoins. In a recent earnings call, CFO Kwon Tae-hoon revealed that the bank is reviewing various approaches to participate in the digital asset ecosystem, including the potential issuance of stablecoins pegged to the Korean won.
Government Support and New Laws
KakaoBank's initiative is enabled by the election of pro-crypto President Lee Jae-myung in June 2025, who has pushed for legislation to legalize stablecoins and integrate them into South Korea’s financial system. The president aims to foster a won-backed stablecoin market to reduce capital outflows and enhance fintech innovations.
Stablecoin Market in South Korea
South Korea is witnessing an increase in the adoption of digital assets with over 16 million crypto exchange users. Major banks like KB Kookmin Bank and Hana Bank are also planning to launch won-pegged stablecoins by 2026, setting the stage for a competitive and regulated stablecoin ecosystem. Notably, South Korean crypto custodian BDACS has officially rolled out institutional custody services for XRP, strengthening ties with Ripple.
Thus, KakaoBank is on the brink of significant changes in its business strategy, proving that South Korea is actively stepping into a new financial future with a focus on digital assets.
