KakaoBank to Launch KRW-Backed Stablecoin by 2025

KakaoBank, South Korea’s largest online bank, has announced plans to enter the cryptocurrency sector by mid-2025 through the development and integration of a Korean won (KRW)-backed stablecoin. This initiative is part of a broader digital transformation strategy led by Kakao Group, which has established a dedicated Crypto Task Force to oversee the project and ensure technological and regulatory alignment [1]. The move reflects Kakao’s ambition to leverage blockchain technology to enhance financial services and drive innovation in the digital economy.

According to Kwon Tae-hoon, KakaoBank’s Chief Financial Officer, the bank is actively considering the launch and custody of cryptocurrencies, building on its existing real-name account infrastructure. The initiative will incorporate robust Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols to maintain compliance and security [2]. KakaoBank is also collaborating with the Bank of Korea on central bank digital currency (CBDC) trials, which include testing digital wallets and remittance services. This cooperation is expected to enhance the bank’s operational framework and regulatory synergy [1].

South Korea’s evolving regulatory landscape is a key enabler of KakaoBank’s expansion into crypto. Newly elected President Lee Jae Myung has pledged to build a strong crypto market centered on the local currency. Legislative proposals from a ruling party member aim to establish a legal framework for issuing KRW-based stablecoins, which could help reduce capital outflows and promote a more vibrant local crypto ecosystem [1]. Under the proposed regulations, stablecoin issuers and intermediaries will operate within a clearer legal environment, allowing banks and fintech firms to introduce a wider range of digital currency products.

Kakao’s strategic approach is further underscored by the active involvement of its top executives, including CEOs from Kakao, Kakao Pay, and Kakao Bank. The Crypto Task Force convenes weekly to evaluate progress and align strategic priorities across the group [2]. This coordinated leadership approach highlights Kakao’s commitment to a unified and well-structured transition into the crypto space.

The stablecoin, if successful, could offer users seamless and instant transactions within Kakao’s ecosystem, including its Kakao Pay platform. By integrating a stablecoin into its financial services, KakaoBank aims to enhance user experience and streamline digital payments, potentially reshaping how individuals and businesses transact in South Korea [2].

The initiative also aligns with broader global trends in crypto adoption. As other major players explore partnerships and new payment solutions—such as MetaMask’s recent collaboration with Baanx and Mastercard—Kakao’s move into the stablecoin market could position it as a leading fintech innovator in the region [1]. With its strong digital infrastructure and large user base, Kakao is well-positioned to drive meaningful change in the financial sector.

As the project progresses, Kakao is expected to continue engaging with regulators and refining its approach to ensure a smooth and compliant launch. The development could mark a significant milestone in South Korea’s digital financial landscape and contribute to the broader adoption of crypto-based services in the country [2].

Source:

[1] MEXC. [KakaoBank, South Korea's largest online bank, is evaluating issuing a Korean won stablecoin](https://www.mexc.com/news/kakaobank-south-koreas-largest-online-bank-is-evaluating-issuing-a-korean-won-stablecoin/63941)

[2] Crypto News. [South Korea's Tech Giant Unveils Bold Blockchain Initiative](https://cryptonews.net/news/finance/31378485/)