KakaoBank Enters Stablecoin Market Amid South Korea’s CBDC Retreat

KakaoBank, South Korea's leading digital bank, is pivoting toward stablecoin issuance and custody services as the nation's central bank abandons its CBDC ambitions. The MOVE follows the Bank of Korea's abrupt termination of its digital won pilot in June, coinciding with new legislation enabling private stablecoin issuance.

CFO Kwon Tae-hoon revealed the bank's technical readiness during an earnings call, citing participation in both phases of the discontinued CBDC trial. "We built and operated wallets, handled exchanges and transfers," Kwon stated, highlighting operational experience rare among traditional financial institutions.

The bank brings three years of crypto exchange real-name account infrastructure to the stablecoin race, including established KYC/AML frameworks. This positions KakaoBank ahead of fintech competitors in meeting forthcoming regulatory requirements.