KakaoBank to Launch KRW-Backed Stablecoin in 2025 Amid Regulatory Push

KakaoBank, South Korea’s leading digital bank, is advancing into the stablecoin market by launching a South Korean won (KRW)-backed stablecoin in early 2025. The initiative, outlined in the bank’s 2025 earnings report and supported by its extensive mobile user base and regulatory infrastructure, signals a strategic push to integrate blockchain-based assets into mainstream finance. KakaoBank’s move is part of a broader, coordinated effort by the Kakao Group to dominate the digital asset space, with KakaoPay having already registered 18 stablecoin-related trademarks in June 2025.

The decision to enter the stablecoin market is well timed, as the South Korean government is actively working on regulatory frameworks to support domestic stablecoin issuance and prevent capital outflows. KakaoBank’s existing three years of experience in providing verified accounts for virtual asset exchanges, along with its participation in the Bank of Korea’s central bank digital currency (CBDC) experiments, position it as a strong contender in this emerging financial landscape. The bank’s CFO, Kwon Tae-hoon, confirmed that KakaoBank will issue and custody cryptocurrencies in collaboration with the Kakao Group’s stablecoin task force, including Kakao, KakaoPay, and KakaoBank branches.

KakaoBank’s strong financial performance supports its foray into digital assets. In the first half of 2025, the bank reported a 353.2 billion won ($254 million) profit, an 11% increase, with deposits rising by 19% to 63.7 trillion won ($45.8 billion). This robust financial position allows KakaoBank to compete with other major South Korean banks, including Kookmin Bank and the Industrial Bank of Korea, which have also attempted to register KRW stablecoin trademarks.

Analysts suggest that KakaoBank’s stablecoin could streamline everyday financial transactions by leveraging blockchain technology, making payments more efficient and secure. The bank’s strong infrastructure and regulatory compliance may also set industry standards for stablecoin innovation and regulation in South Korea. As the government works to create a more structured environment for digital assets, KakaoBank’s proactive approach could accelerate the adoption of stablecoins as a mainstream payment tool.

Despite the growing interest, KakaoBank has not yet disclosed technical details such as the token’s architecture, governance model, or exact launch timeline. However, the initiative underscores the bank’s commitment to digital innovation and its ambition to lead the digital finance revolution in the country.

Source: [1] South Korea's KakaoBank Plans to Enter the Crypto Market with a Stablecoin (https://en.coin-turk.com/south-koreas-kakaobank-plans-to-enter-the-crypto-market-with-a-stablecoin/)

[2] KakaoBank to Launch KRW-Backed Stablecoin by 2025 (https://www.ainvest.com/news/kakaobank-launch-krw-backed-stablecoin-2025-2508)

[5] KakaoBank's stablecoin initiative could revolutionize South Korea's digital finance (https://x.com/itslaceybby?lang=en)