KakaoBank Eyes Stablecoin Lead as South Korea Shifts Crypto Regulation

KakaoBank, South Korea’s largest digital bank, is accelerating its entry into the stablecoin sector as the government under President Lee Jae-myung continues to shift its stance on cryptocurrency regulation. During a recent internal performance meeting, Chief Financial Officer Kwon Tae-hoon confirmed that the bank is exploring the creation and management of stablecoins, with a dedicated team including executives from KakaoPay leading the initiative [1]. The bank filed stablecoin-related trademarks on June 23, 2025, and is expected to compete with eight other major South Korean banks, all of which aim to launch won-denominated stablecoins by 2026 [2].

KakaoBank’s ambitions align with the pro-crypto agenda of President Lee Jae-myung, who has been actively working on legislation to formalize stablecoins within the South Korean financial system. This regulatory shift creates a favorable environment for institutions like KakaoBank to innovate and expand their offerings in the digital asset space [3]. The bank’s prior experience in supporting crypto exchanges and its collaboration with South Korea’s central bank on digital currency projects position it as a strong contender in the market [4]. With 25.86 million users and $46.47 billion in assets as of March 2025, KakaoBank has the infrastructure and scale to potentially dominate the emerging sector [5].

Despite the positive momentum, KakaoBank’s stock price has shown limited reaction to the news. On Thursday, shares rose only 0.93% to 27,150 won ($19.60), following a slight peak the previous day. This suggests that market sentiment remains cautious, possibly due to uncertainties around regulatory compliance and market adoption [6]. Meanwhile, South Korea’s crypto market continues to grow, with over 16 million users on crypto exchanges, partly fueled by global optimism following the U.S. election in November 2024 [7].

Globally, stablecoins are gaining traction among financial and technology firms, with Fireblocks reporting in May 2025 that approximately 90% of major players are exploring their use [8]. South Korea’s regulatory environment appears to be catching up with international trends, as countries like Russia and Abu Dhabi also advance their stablecoin initiatives [9]. KakaoBank’s strategic focus on stablecoin issuance and custody services reflects both a proactive approach to regulatory change and a recognition of the growing demand for digital assets among investors [10].

The bank’s plans highlight a broader trend of traditional financial institutions adapting to the evolving digital landscape. By integrating blockchain technology and expanding into stablecoin services, KakaoBank is not only responding to regulatory shifts but also positioning itself to lead in a market that is expected to grow significantly in the coming years [11]. As it moves forward, the bank’s ability to navigate regulatory scrutiny and maintain transparency will be crucial to its success in this competitive and evolving sector [12].

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[1] title1...(https://www.cryptotimes.io/2025/08/07/kakaobank-eyes-stablecoin-lead-as-seoul-shifts-crypto-plans/)

[2] title2...(https://www.ainvest.com/news/kakaobank-eyes-stablecoin-market-south-korea-regulatory-shift-2508/)

[3] title3...(https://www.ainvest.com/news/kakaobank-explores-stablecoin-issuance-south-korea-crypto-policy-shift-2508/)

[4] title4...(https://startupnews.fyi/2025/08/07/south-koreas-kakaobank-plans-stablecoin-services-report/)

[5] title5...(https://coinmarketcap.com/community/articles/6894513cf301f5014a70ba08/)

[10] title10...(https://financefeeds.com/stablecoins-on-the-rise-europe-pushes-back/)

[11] title11...(https://www.cryptotimes.io/2025/08/07/ethereum-battles-resistance-despite-etf-inflows-and-rising-dominance/)

[12] title12...(https://startupnews.fyi/2025/08/07/crypto-advocate-paul-atkins-sworn-in-34th-us-sec-chair/)