KakaoBank to Launch KRW-Pegged Stablecoin via Kakao Pay
KakaoBank, South Korea’s largest digital-only bank, plans to issue and custodialize a Korean won-pegged stablecoin. The new KRW stablecoin project is overseen by a dedicated task force with KakaoBank, Kakao Pay and the Kakao Group. The bank leverages its blockchain-based infrastructure, real-name verification, KYC/AML systems built over three years and participation in the Bank of Korea’s CBDC pilot to manage digital wallets and transactions. In H1 2025, KakaoBank reported a net profit of 263.7 billion KRW, up 14% year-on-year, and grew its user base to 26 million. Integration with Kakao Pay and KakaoTalk offers a full ecosystem for KRW stablecoin distribution and use. Traders should watch for increased competition in Asia’s digital currency market and potential shifts in stablecoin trading dynamics.
Bullish
The announcement of KakaoBank’s KRW stablecoin is bullish for the new token’s market. In the short term, integration with Kakao Pay and KakaoTalk could drive user adoption and liquidity as traders seek KRW-pegged digital assets for on-chain transactions. In the long term, KakaoBank’s established digital infrastructure, robust KYC/AML systems and CBDC pilot experience provide a strong foundation for sustained stablecoin usage. This development is likely to stimulate trading volumes and enhance market depth in Asia’s stablecoin sector.