South Korea’s Kakao, KakaoPay, and KakaoBank said on July 23 that they signed a strategic business agreement with Circle Internet Group, a US-based stablecoin issuer, to explore won-linked digital assets and blockchain payment services.

The companies said they will review the feasibility of won-pegged digital assets and tokenized financial services based on domestic regulations and market conditions.

They will also discuss using Circle’s infrastructure for overseas payments and remittances.

The move comes as South Korea still lacks a stablecoin-specific framework, and domestic issuance remains illegal under current rules while several bills are under review.

Draft proposals could allow non-bank issuers, but the Bank of Korea has pushed for bank-led consortia, leaving unresolved who can issue won stablecoins.

For Kakao, the partnership builds on earlier blockchain work tied to the merged Kaia network, including a won stablecoin pilot with KB Kookmin covering merchant payments and remittances.

Eight South Korean banks are forming a joint venture for a won stablecoin targeted for late 2025 or early 2026, pending approval.

🔗 Source: Chosun Daily

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