KakaoBank to Issue KRW Stablecoin with KakaoPay Backing

Published: 2025-08-06 20:32:43 |

KakaoBank, South Korea’s leading digital bank with over 25 million users, is advancing plans to issue a Korean won–backed (KRW) stablecoin and provide custody services. In its H1 2025 results, CFO Tae-Hoon Kwon highlighted the bank’s robust KYC/AML infrastructure and CBDC simulation experience, including real-name verification for crypto exchanges. A Kakao Group Stablecoin Task Force—spanning KakaoBank, KakaoPay and Kakao—aims for a 1:1 KRW stablecoin. In June 2025, KakaoPay filed 18 trademarks and patents with KIPO for stablecoin technologies. Backed by President Lee Jae-Myung’s regulatory push to support domestic stablecoins and curb capital flight, and fueled by an 11% profit rise and strong deposit growth, KakaoBank faces competition from Kookmin Bank and IBK as it seeks to capture market share in the $275 billion stablecoin sector. The move underscores growing institutional adoption of blockchain assets in mainstream finance.

Bullish

This announcement is bullish for the crypto market because it signals deep institutional backing, large user reach and regulatory support. Short term, traders may see increased demand for KRW stablecoin pairs and heightened trading activity on local exchanges. Long term, KakaoBank’s strong KYC/AML controls, CBDC expertise and KIPO-backed intellectual property lay the groundwork for widespread adoption of blockchain assets in South Korea, potentially driving growth across DeFi, trading volumes and stablecoin usage.