KakaoBank Explores Stablecoin Move Amid South Korea's Regulatory Shift

KakaoBank, South Korea’s leading digital bank, is reportedly preparing to enter the stablecoin market as the country’s regulatory environment shifts to support digital currency innovation. During the bank’s 2025 first-half earnings call, Chief Financial Officer Kwon Tae-hoon confirmed that KakaoBank is evaluating various strategies for stablecoin-related services, including issuance and custody of digital assets. The initiative is being spearheaded by the Kakao Group’s internal Stablecoin Task Force, which includes KakaoPay and other key affiliates [1].

KakaoBank’s interest in stablecoins builds on its existing experience in digital asset infrastructure. Over the past three years, the bank has issued real-name verified accounts for virtual asset exchanges and implemented risk-monitoring systems based on KYC and AML requirements. Additionally, it has participated in the Bank of Korea’s central bank digital currency (CBDC) experiments, where it conducted trials on wallet creation, asset exchange, and remittance services [1]. These experiences, according to Kwon, provide the bank with both the technical and regulatory foundation to explore stablecoin offerings.

The bank has also taken steps to secure its position in the market by filing multiple trademark applications with the Korean Intellectual Property Office. The filings include potential brand names such as BKRW and KRWB, covering categories like cryptocurrency transaction software, blockchain-based payment platforms, and digital financial services [1]. A KakaoBank representative noted that these trademark applications were made to “proactively respond to developments in the stablecoin market” [1]. While the filings are not definitive proof of a stablecoin launch, they indicate strategic groundwork is being laid.

KakaoBank’s move aligns with broader developments in South Korea, where regulatory changes under President Lee Jae-myung have spurred financial institutions to explore stablecoin opportunities. Since his election in June 2024, the president has publicly supported cryptocurrency innovation and backed legislation to legalize the issuance of stablecoins pegged to the Korean won. In response, nine major South Korean banks—including KakaoBank and Kookmin Bank—have either filed trademarks or announced internal reviews for launching their own won-backed stablecoins by 2026 [1].

The first such stablecoin, KRWIN, was introduced on August 5 in a controlled pilot phase by fintech firm fanC and digital infrastructure provider Initech. The token is backed 1:1 by the Korean won [1]. This pilot reflects growing institutional interest and regulatory experimentation in the space.

Globally, stablecoins have also gained traction, with major economies and financial institutions exploring their potential. The total stablecoin market capitalization recently reached an all-time high of $261 billion, marking 22 consecutive months of growth, driven by increased institutional adoption, on-chain utility, and trading volumes [1].

KakaoBank’s potential entry into the stablecoin market underscores the broader shift in South Korea’s financial landscape toward digital assets. As regulatory clarity improves, the bank’s prior experience and strategic preparations position it as a key player in the evolving stablecoin ecosystem.

Source: [1] KakaoBank signals entry into stablecoin market as South Korea opens the door (https://coinmarketcap.com/community/articles/68945004a6cc7553011eb0eb/)