KakaoBank Considers Issuing and Custody of Stablecoins in Korea
- KakaoBank considers operating in won-backed stablecoins
- Digital bank joins regulatory task force on cryptocurrencies
- South Korean President Backs Local Stablecoin Market
KakaoBank, the financial arm of tech giant Kakao, has signaled its intention to enter the South Korean stablecoin market, following regulatory advances driven by the current government. The intention was revealed during the company's first-half 2025 earnings presentation, with the company's CFO, Kwon Tae-hoon, highlighting that the bank is exploring options such as issuing and custody of digital assets.
According to Kwon, the bank is aligned with Kakao Group's stablecoin task force and sees stability and technological capacity as crucial factors for the development of this type of digital asset.
“For three years, while issuing real-name verified accounts to virtual asset brokers, we have been operating risk-related functions, including Know Your Customer (KYC) and Anti-Money Laundering (AML) monitoring.”
stated .
The executive also noted that KakaoBank participated in the Bank of Korea's pilot project for central bank digital currency (CBDC), being responsible for processing digital wallets, transfers and remittances during the tests.
The move is in line with the directives of South Korean President Lee Jae Myung, who advocates the creation of a won-backed stablecoin market as a way to curb capital flight. After his inauguration, members of the ruling party introduced a bill to establish a regulatory framework for the issuance and circulation of local stablecoins.
The private sector also responded quickly to the proposal. KakaoPay, the payments division of the same group, was one of the first to register trademarks related to stablecoin symbols in the country, back in June.
In parallel with the advancement in digital finance, KakaoBank reported 11% growth in operating profit, reaching 353,2 billion won (US$254 million). Deposit volume rose to 63,7 trillion won (US$45,8 billion), while its customer base reached 25,86 million—approximately half of South Korea's population.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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