KakaoBank Explores Stablecoin Issuance Amid South Korea's Crypto Policy Shift

KakaoBank, South Korea’s largest online bank, is preparing to expand into the stablecoin market by exploring services related to the issuance and custody of stablecoins [1]. The bank’s chief financial officer, Kwon Tae-hoon, revealed during the company’s first-half 2025 earnings call that KakaoBank is “reviewing various methods such as issuance and custody” and “plans to actively participate” in the “digital asset ecosystem,” according to a report by ZDNet Korea [2]. The initiative is being coordinated with Kakao’s Stablecoin Task Force, which includes leadership from KakaoPay, one of Kakao’s core affiliates.

This move follows the election of South Korean President Lee Jae-myung in June, whose administration has pushed forward with policies to support the crypto industry, including a legislative effort to legalize stablecoins [3]. KakaoBank is among several major banks in South Korea that are preparing to issue Korean won-pegged stablecoins, with eight others expected to launch such offerings by 2026 [4]. In addition to KakaoBank, Kookmin Bank and the Industrial Bank of Korea have also filed for stablecoin-related trademarks, signaling a broader shift in the financial sector toward digital assets.

KakaoBank has been building its digital asset capabilities for years. The bank participated in the Bank of Korea’s central bank digital currency (CBDC) experiment and has operated a real-name verification system for virtual asset exchanges since 2022 [5]. Kwon highlighted the bank’s existing infrastructure, including compliance measures such as Know Your Customer (KYC) and Anti-Money Laundering (AML) monitoring, as key assets in its stablecoin strategy. KakaoBank currently manages $46.47 billion in assets and serves approximately 25.86 million users, or roughly half of South Korea’s population [6].

Despite the market’s interest in KakaoBank’s stablecoin ambitions, the stock has remained relatively flat in recent trading sessions. Following the announcement of its trademark filing in June, the stock rose 19.3% to 37,000 Korean won. However, after the latest update on its stablecoin plans, the share price rose briefly to 27,825 won but then fell to 26,900 won before closing at 27,150 won on Thursday, reflecting a modest 0.93% gain [7].

The broader South Korean crypto market has also seen growth, with crypto exchange users surpassing 16 million, or 30% of the population. This trend has been fueled in part by global events, including the 2024 U.S. presidential election [8].

KakaoBank’s move reflects a global trend in which institutions are increasingly exploring stablecoins as part of their financial strategies. A recent report from Fireblocks found that 90% of institutional investors are examining the use of stablecoins in their operations [9]. Additionally, several countries, including Russia and the United Arab Emirates, have shown interest in developing their own stablecoin frameworks [10].

KakaoBank’s potential stablecoin offering, if launched, could set a new standard in the South Korean financial market. The bank’s experience in digital asset services and its strong regulatory engagement position it as a key player in the country’s evolving digital finance landscape. As the regulatory environment continues to develop, KakaoBank’s entry into the stablecoin space is expected to influence both market dynamics and policy directions in the region.

Sources:

[1] KakaoBank, South Korea’s leading online bank, is preparing to expand into the stablecoin market

(https://cointelegraph.com/news/kakao-bank-stablecoin-plans-south-korea-crypto)

[2] KakaoBank’s chief financial officer revealed stablecoin plans during the first-half 2025 earnings call

(https://cryptobriefing.com/kakao-bank-stablecoin-issuance/)

[3] President Lee Jae-myung has introduced crypto-friendly policies, including the legalization of stablecoins

(https://www.ainvest.com/news/kakaobank-launch-krw-backed-stablecoin-2025-regulatory-push-2508)

[4] Eight major South Korean banks are preparing won-pegged stablecoins, with expected launches by 2026

[5] KakaoBank has participated in the Bank of Korea’s central bank digital currency pilot program

(https://www.binance.com/en/square/post/27945771983417)

[6] KakaoBank serves over 25.86 million users and manages $46.47 billion in assets

[7] KakaoBank’s stock price has shown minimal movement following its stablecoin announcements

[8] South Korea’s crypto exchange user base has exceeded 16 million

[9] 90% of institutional investors are exploring the use of stablecoins

(https://www.fireblocks.com/blog/fireblocks-research)

[10] Russia and the UAE are exploring their own stablecoin frameworks