KakaoBank to Enter Stablecoin Market Amid Regulatory Support and Industry Trend

KakaoBank, the digital banking subsidiary of South Korea’s Kakao Group, is reportedly preparing to enter the stablecoin market with an "active participation" strategy, according to recent reports [1]. The bank’s Chief Financial Officer, Kwon Tae-hoon, disclosed during the first-half 2025 earnings call that the company is exploring various approaches, including the issuance and custody of stablecoins [2]. These efforts are being coordinated through a dedicated Stablecoin Task Force, which includes leadership from key Kakao affiliates such as KakaoPay [3].

The push into the stablecoin space follows the election of South Korean President Lee Jae-myung, who has introduced favorable policies for the cryptocurrency sector, including a bill to legalize KRW-backed stablecoins [1]. KakaoBank has also filed for stablecoin-related trademarks on June 23, alongside other major South Korean banks such as Kookmin Bank and the Industrial Bank of Korea [5]. The bank is among eight institutions reportedly planning to launch won-pegged stablecoins by 2026 [5].

KakaoBank has demonstrated prior experience in handling digital assets. Over the past three years, it has issued real-name verified accounts for virtual asset exchanges and implemented Know Your Customer (KYC) and Anti-Money Laundering (AML) monitoring systems [3]. The bank also participated in the Bank of Korea’s central bank digital currency (CBDC) pilot, giving it a foundation in digital currency development [4]. With 25.86 million users and $46.47 billion in assets under management as of March 2025, KakaoBank is well-positioned to expand its digital financial offerings [3].

The bank’s entry into the stablecoin market is part of a broader industry trend. Fireblocks, a digital asset infrastructure provider, noted in a May 2025 report that 90% of institutional players are exploring the use of stablecoins in their operations [1]. In South Korea, crypto exchange users have surpassed 16 million, representing over 30% of the population [1]. This growing user base and regulatory openness are contributing to a more favorable environment for stablecoin development.

KakaoBank’s stock reacted to earlier news of its trademark applications with a 19.3% increase, but its price has since remained relatively flat. After a brief rise to 27,825 Korean won ($20.10) following the announcement of its stablecoin strategy, the share price closed at 26,900 won ($19.43) and further rose by only 0.93% in the subsequent trading session to 27,150 won ($19.60) [1].

The bank, founded in 2016 as a joint venture between Korea Investment Holdings and Kakao Corp, has been steadily growing its digital footprint. By entering the stablecoin market, KakaoBank aims to reinforce its leadership in South Korea’s evolving financial ecosystem [3].

Source:

[1] KakaoBank is reportedly looking at services for the issuance and custody of stablecoins with plans to “actively participate” in the crypto market. https://cointelegraph.com/news/kakao-bank-stablecoin-plans-south-korea-crypto

[2] Kakao Bank is considering launching stablecoin issuance and custody services. https://cryptobriefing.com/kakao-bank-stablecoin-issuance/

[3] KakaoBank, the banking arm of South Korea’s Kakao Group, has signaled plans to enter the growing stablecoin market in the country. https://coincentral.com/kakaobank-prepares-for-south-koreas-won-based-stablecoin-market-launch/

[4] KakaoBank plans to enter the South Korean stablecoin market ... participated in the central bank's central bank digital currency pilot project in South Korea. https://www.binance.com/en/square/post/27945771983417

[5] At least three local banks, including Kakao Bank, Kookmin Bank and the Industrial Bank of Korea, have recently filed for Korean won stablecoin trademarks. https://www.tradingview.com/news/cointelegraph:2149****9094b:0-xrp-custody-goes-live-for-korean-institutions-via-bdacs-amid-strong-interest/