KakaoBank Aims for Stablecoin Dominance Amid South Korea’s Crypto Policy Shift

KakaoBank, South Korea's leading digital bank under Kakao Corporation, is aggressively pursuing stablecoin development as the nation's regulatory landscape evolves. CFO Kwon Tae-hoon confirmed the initiative during a recent performance review, signaling ambitions to become a major issuer of blockchain-based currency.

The bank's specialized fintech team, drawing expertise from KakaoPay and other subsidiaries, is driving the project forward. This strategic MOVE aligns with President Lee Jae-myung's pro-crypto agenda, including proposed legislation to recognize stablecoins as legal financial instruments.

With 25.86 million users and $46.47 billion in assets under management, KakaoBank brings substantial infrastructure to the stablecoin race. The institution's prior experience includes collaborating with South Korea's central bank on digital currency trials and providing banking services to cryptocurrency exchanges.

Eight competing banks are developing won-pegged stablecoins, but KakaoBank's first-mover advantage in digital finance positions it as the likely market leader. The Korean crypto ecosystem continues rapid expansion, with over 16 million citizens now participating in digital asset markets.