- KakaoBank is preparing infrastructure for a Korean won-backed stablecoin and tokenized assets.
- Kaia, a blockchain partner of Kakao, has registered trademarks for several won-pegged stablecoins ahead of new legislation.
- A bank-issued stablecoin could enable fast transfers while complying with Korea’s strict regulations on capital flow.
- KakaoBank aims to operate its own blockchain systems, including smart contract execution and digital asset management.
KakaoBank, a subsidiary of South Korea’s leading internet company Kakao Corp, is developing the technical foundation to support a Korean won-backed stablecoin and tokenized financial assets. This work is progressing ahead of upcoming regulations that may allow banks to integrate digital won into retail and cross-border payment systems.
The bank is advancing a smart contract foreign exchange (FX) settlement system, which could serve as the base for the planned stablecoin, according to a report from Seoul-based financial news outlet Newspim. KakaoBank is building infrastructure for on-chain financial services, including smart contract execution, token standards, full-node operations, and systems for issuing and managing digital assets. This would enable the bank to run its own blockchain network rather than relying on external platforms.
Kaia, the blockchain development partner formed from Kakao’s Klaytn network and LINE’s Finschia network, has registered trademarks for at least four Korean won-pegged stablecoins earlier this year. Sam Seo, chairman of the Kaia DLT Foundation, confirmed that discussions about won stablecoins are currently sensitive but said Kaia is in talks with several Korean teams on a stablecoin proof of concept (POC). Seo also noted Kakao as the largest holder of KAIA tokens and indicated ongoing collaborations.
The move to develop a bank-issued digital won aims to offer 24/7 fast transfers while meeting South Korea’s strict capital flow and anti-money laundering rules. Joony Koo, CEO of Spacebar.xyz, pointed out that traditional banks in Korea work collectively to manage risks and regulations, while KakaoBank leverages its retail strengths. With ownership of the country’s largest chat app and payment platform, KakaoBank can position its stablecoin where users are already engaged, easing adoption.
This initiative comes amid broader industry trends where major tech and financial firms in South Korea are integrating digital assets into their operations to stay competitive.
For further details, see Newspim and Kaia’s Discord.
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