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KakaoBank starts work on won-pegged stablecoin
KakaoBank, the digital banking unit of South Korean tech firm Kakao, has moved its Korean won-pegged stablecoin project into the development phase, according to a Newspim report.
The company is recruiting blockchain back-end developers with experience in smart contracts and token standards.
KakaoBank CFO Kwon Tae-hoon said in August that the bank is exploring different digital asset options, including stablecoin issuance and custody.
KakaoBank and other major financial divisions under the Kakao Group previously set up a task force to examine stablecoin and digital finance initiatives.
The push into stablecoins follows reports that rival tech giant Naver is launching a wallet service for a Busan-based stablecoin project, and that Naver Financial is reportedly in the process of a merger with Upbit, South Korea’s largest cryptocurrency exchange.
South Korea’s government has identified the won-stablecoin market as a priority, but new regulations have not progressed, with the central bank insisting that only licensed banks can issue such tokens.
🔗 Source: The Block
🧠 Food for thought
Implications, context, and why it matters.
KakaoBank’s stablecoin timeline hinges on unresolved regulatory definitions
- Law looks unlikely in 2025 due to a BOK vs FSC dispute 1. BOK wants banks to hold 51% and calls stablecoins deposit-like 2, while the FSC is open to tech firms 3.
- Three competing bills set a 5 billion won (~$3.4 million) minimum capital for issuers 4. They split on whether interest can be paid, which keeps ownership and licensing rules for KakaoBank unclear.
- If won stablecoins must follow a bank-led path rather than allow independent tech issuers, KakaoBank may keep work in research and development (R&D) instead of aiming for launch.
Infrastructure providers should track which blockchain rails Korean issuers select
- Payment gateways, wallets, and analytics teams should track which blockchain networks issuers pick. These are the rails, meaning the underlying transaction networks, and they will set 2025 to 2026 integration priorities.
- Naver Financial’s Busan wallet is slated for next month 5, and eight banks plan a won-pegged stablecoin in 2026 4. Those timelines give near term deployment targets while national rules remain unclear.
- Layer-1 (base blockchains) and layer-2 (scaling networks built atop layer-1s) teams should align early with the standards these Korean projects adopt. Banks already test international remittances and blockchain financing 3, which keeps options open before rules may narrow the stack 2.
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