KakaoBank Eyes KRW-Backed Stablecoin Launch by 2025 Amid Digital Expansion

KakaoBank, South Korea’s leading online financial institution, is reportedly exploring the launch of a stablecoin backed by the South Korean won, with potential deployment by the end of 2025 [1]. The initiative is part of the bank’s broader digital transformation strategy, as it aims to expand its presence in the fast-evolving digital asset market. The development was first reported by Cryptonews, citing internal discussions and strategic planning within Kakao Group, the parent company of KakaoBank [2].

The bank’s Chief Financial Officer, Kwon Tae-hoon, mentioned during the first-half 2025 earnings call that KakaoBank is “reviewing various methods such as issuance and custody related to the digital asset ecosystem,” according to a report by ZDNet Korea [3]. This signals a shift in the bank’s strategic focus toward digital finance. The company has also formed a dedicated stablecoin task force, with Kakao, KakaoPay, and KakaoBank executives leading the initiative through weekly strategy discussions.

KakaoBank has demonstrated robust financial performance in the first half of 2025, posting a net profit of 263.7 billion won, up 14% year-on-year [3]. This strong performance may provide the necessary capital to support the exploration of new ventures, including a potential stablecoin launch. The proposed stablecoin, which would be pegged 1:1 to the South Korean won, could streamline domestic transactions and reduce dependency on foreign payment systems, aligning with South Korea’s broader digital economy objectives.

The move reflects a growing trend among traditional financial institutions in South Korea to integrate blockchain-based solutions. KakaoBank, benefiting from the extensive user base and digital infrastructure of its parent company, is well-positioned to capitalize on the opportunity. However, the project faces regulatory uncertainties, with Bank of Korea Governor Lee Chang-yong reportedly skeptical of the government’s stablecoin ambitions [4]. Additionally, the regulatory framework for stablecoins in South Korea is still in its early stages, which may impact the timeline and structure of the project.

The potential launch also coincides with increased global interest in stablecoins. For example, Circle, issuer of USDC, has seen heightened engagement in South Korea, with its stock becoming one of the most actively traded among retail investors [5]. The South Korean government, under newly elected President Lee Jae-myung, has also pledged to explore the issuance of a KRW-pegged stablecoin for use in business and international trade, further emphasizing the strategic importance of the asset class [6].

KakaoBank’s exploration of a stablecoin initiative highlights the ongoing convergence of traditional finance and blockchain technology in South Korea. As the bank moves forward with its plans, it will need to balance innovation with regulatory compliance, making its approach a critical indicator for the future of digital assets in the region.

Source:

[1] Cryptonews, [https://cryptonews.com/news/live-crypto-news-today-latest-updates-for-august-07-2025/](https://cryptonews.com/news/live-crypto-news-today-latest-updates-for-august-07-2025/)

[2] Cryptonews, [https://cryptonews.com/news/kakaobank-mulls-south-korean-won-backed-stablecoin-launch-by-2025-report/](https://cryptonews.com/news/kakaobank-mulls-south-korean-won-backed-stablecoin-launch-by-2025-report/)

[3] Coinspeaker, [https://www.coinspeaker.com/south-koreas-top-online-bank-to-enter-stablecoin-market/](https://www.coinspeaker.com/south-koreas-top-online-bank-to-enter-stablecoin-market/)

[4] Kukmin Ilbo, [https://www.kukminilbo.com/](https://www.kukminilbo.com/)

[5] Bloomberg, [https://www.bloomberg.com/](https://www.bloomberg.com/)

[6] ZDNet Korea, [https://www.zdnet.co.kr/](https://www.zdnet.co.kr/)