KakaoBank Eyes Won-Backed Stablecoins Amid South Korea’s Digital Asset Push

Highlights:

• KakaoBank eyes Won-backed stablecoins amid South Korea’s digital asset market expansion.
• KakaoBank aligns with national efforts to regulate and issue local currency-backed stablecoins.
• Kakao’s stablecoin task force unites key affiliates to streamline digital asset strategies.

KakaoBank has revealed its intentions to actively explore the emerging stablecoin market in South Korea. This follows the government’s drive to establish a Korean won-based stablecoin system. According to a local media report, the bank announced its mission during its H1 2025 earnings announcement.

Kwon Tae-hoon, the CFO of the bank, disclosed that the bank was actively exploring the provision of custodianship and issuance of digital assets. He noted that KakaoBank has already established grounds with the experience of managing risks. Over three years, the bank has been managing real-name verified accounts of crypto platforms with close attention paid to KYC and AML requirements.

KakaoBank is preparing to participate in the future in cooperation with the stablecoin task force of the Kakao Group. This task force comprises Kakao, Kakao Pay, and the executive of KakaoBank. The group meets every week to monitor trends and to discuss project development.

JUST IN:

🇰🇷 SOUTH KOREA'S KAKAOBANK JUST ANNOUNCED THEY'RE WORKING ON A WON-BACKED STABLECOIN! pic.twitter.com/wl2BpEH4DR

— Coinvo (@ByCoinvo) August 6, 2025

Stablecoin Drive Aligns with National Strategy

President Lee Jae Myung has encouraged the establishment of a won-based stablecoin market. He considers this a safeguard against capital flight and an instrument of economic domination. Shortly after his election, legislators introduced a bill to aid the creation of a regulatory structure on stablecoins.

KakaoBank identifies stablecoins as one of its opportunities to enhance its digital services. The bank currently has a strong deposit balance of 63.7 trillion won, capable of supporting stablecoin-centered services. In June, KakaoPay also registered trademarks related to stablecoins, thus indicating broader intentions of the group.

KPKRW??

KakaoPay has filed a trademark related to its upcoming KRW stablecoin, and it looks like 'KPKRW' is the most likely name.

Seems like the KRWstablecoin will be KP
and KP will be KRWstablecoin.

(For reference, we already have @Xangle_official KP and @initia KP @KPeruggi… pic.twitter.com/Wv1j1sZvtW

— KP I Xangle (@KPJang2) June 20, 2025

Kwon Tae-hoon noted that “stability and technological prowess are paramount for stablecoins.” He added that secure operating tools and experience are already present within the bank. By joining the Bank of Korea on its simulation of the CBDC, KakaoBank gained experience in the issuance of digital wallets and in digital remittances.

In addition, the drive towards the stablecoin market is not an isolated one. Kakao is advancing on a number of fronts. Kakao Pay performs digital money transactions, KakaoBank offers a banking system, and Kakao offers a technology platform. When combined, they present a unified framework for deploying stablecoins.

KakaoBank Eyes Won-Backed Stablecoins for Digital Finance Expansion

The digital banking system provided by KakaoBank offers it an advantage in the shift to asset-backed tokens. The bank has close to 26 million users, serving approximately half of the population of South Korea. It has added one million new users in the first half of 2025 alone.

An increase of 11% in operating profit and 19% in deposits shows an increase in consumer trust. These figures indicate that the bank is in a good position to introduce new digital products such as stablecoins. It collaborates with the stablecoin task force and central bank experiments, which further enhances its preparedness. Kakao Group executives stated that the task force tracks global and domestic developments in stablecoins. It aims at aligning group strategy and operations with regulatory changes and global trends. Furthermore, weekly meetings maintain the continuity of all affiliate divisions.