KakaoBank Shakes Up Finance: South Korea’s Digital Giant Launches Crypto Stablecoin Play

Move over, traditional banks—KakaoBank just fired the latest shot in the digital asset arms race. South Korea's leading digital lender is diving headfirst into crypto with plans to issue its own stablecoin, signaling a seismic shift in mainstream finance's approach to blockchain.

Why this matters

When a regulated banking heavyweight like KakaoBank—with its 20 million-strong user base—gets into stablecoins, it's not just dipping toes in the water. This is a cannonball into the deep end of decentralized finance. The move could finally bridge the gap between won and Web3 for millions of Koreans.

The regulatory tightrope

Insiders whisper the project's already in advanced talks with South Korea's Financial Services Commission. Because nothing says 'serious player' like navigating bureaucratic minefields while legacy banks still think blockchain is a type of bike lock.

What's next?

If approved, KakaoBank's stablecoin could launch before 2026—potentially becoming the first bank-issued digital asset with full regulatory blessing in Asia's third-largest economy. Talk about a glow-up from the days when crypto exchanges struggled to get basic banking services.

Bottom line: When traditional finance finally adopts crypto, they don't just enter the market—they try to own it. The question is whether DeFi purists will trust a centralized player's coin, or if this just gives more ammo to the 'we told you banks would co-opt crypto' crowd.

KakaoBank’s Stablecoin Initiative

During the financial results announcement for the first half of 2025, KakaoBank’s CFO, Kwon Tae-hoon, underscored the bank’s exploration of cryptocurrency issuance and custody options. The company is preparing to introduce a won-based stablecoin, utilizing its three-year history of real-name verified account systems to establish secure infrastructures for cryptocurrency transactions. Concurrently, the Kakao Group Crypto Task Force continues its efforts. Kwon highlighted that maintaining stability and technological competence are critical in this domain.

In addition, KakaoBank has participated in the Bank of Korea’s central bank digital currency (CBDC) trials, where digital wallet creation, remittance, and transfer tests were conducted. This initiative enhanced both regulatory collaborations and operational infrastructures.

Regulatory Framework for Won-Based Stablecoins in South Korea

The newly elected President, Lee Jae Myung, previously declared his intention to promote a cryptocurrency market based on the local currency, won, to prevent capital flight. This regulatory plan was solidified through a fundamental bill proposed by a ruling party Member of Parliament, as promised during the election campaign.

The proposed bill aims to provide a clear legal framework for won-based stablecoin issuers and intermediaries. Once finalized, banks and fintech companies will be capable of directly bringing various won-based products to the market, enhancing their offerings.

The private sector is also witnessing increased activity. KakaoPay filed trademark applications for cryptocurrency symbols in June, indicating an impending intensification of competition among South Korea’s prominent payment service providers as they gear up for this significant marketplace shift.