Stablecoin Project Development

KakaoBank, South Korea’s digital banking leader, has taken a significant step toward the launch of its local currency-pegged stablecoin. The bank is now in the development stage of the project, actively seeking blockchain service backend developers. The job listings highlight the need for expertise in smart contracts, token standards, transaction management, and full node operations—key skills for building a stablecoin infrastructure.

KakaoBank’s Chief Financial Officer, Kwon Tae-hoon, indicated that the bank is exploring various digital asset options, including the issuance or custody of digital assets, during its H1 2025 earnings release. This aligns with the broader strategy of Kakao Group’s financial arms, which formed a task force to advance the concept of a won-stablecoin. This project aims to solidify the group’s position in South Korea’s growing digital finance ecosystem.

KakaoPay's Market Impact

Earlier this year, KakaoPay, the payment subsidiary of Kakao Group, filed several copyright applications for stablecoin tickers such as “PKRW” and “KRWK.” These filings have sparked further interest in Kakao’s digital currency initiatives. KakaoPay’s extensive user base—42 million members, with 24 million active monthly users—positions it as a formidable force in the local payments market.

In June, KakaoPay caused a stir by filing 18 trademark applications related to a potential Korean won-backed stablecoin. These filings included tickers like “KRWKP” and “KWRP,” covering areas like digital asset transactions and electronic money transfers. The move resulted in a dramatic 200% surge in KakaoPay’s stock price in just a month, reflecting investor optimism about the company’s digital finance ambitions. Regulatory developments will likely influence the pace of this initiative.

Competition for Stablecoin Dominance

KakaoBank’s stablecoin initiative comes at a time when Naver, another major South Korean tech firm, is also making strides in the digital currency sector. Naver Financial is reportedly planning a merger with Upbit, South Korea’s leading cryptocurrency exchange, to develop its own stablecoin.

Both Kakao and Naver are capitalizing on their extensive user bases to dominate the stablecoin market, positioning themselves as major players in the nation’s digital finance future. However, regulatory barriers remain, including the Bank of Korea’s restrictive stance on stablecoin issuance by non-banks.