KakaoBank Eyes Stablecoin Lead as Seoul Shifts Crypto Plans

TheCryptoTimesPublished on 2025-08-07Last updated on 2025-08-07

South Korea’s KakaoBank, owned by IT conglomerate Kakao Corporation, is intensifying efforts to launch stablecoin services. During a recent company performance meeting, the bank’s CFO, Kwon Tae-hoon, stated that they are looking into ways to create and manage these stablecoins. 

The bank aims to be a significant player in the digital money world, according to reports by ZDNet Korea. A special team at Kakao, including top leaders from KakaoPay, a related company, is spearheading this project. 

This development follows the election of South Korea’s new president, Lee Jae-myung, in June 2025. Lee Jae-myung is an active supporter of cryptocurrencies and is working on a bill to make stablecoins legal.

On June 23, 2025, KakaoBank applied for stablecoin-related trademarks. Eight other major banks in South Korea also have plans to launch their won-based stablecoins by 2026. KakaoBank has experience with digital money, as it has helped many crypto exchanges to secure their accounts.

The bank has also worked on a digital currency project with South Korea’s central bank. Further, it has 25.86 million users, which is almost half of South Korea’s 51.7 million population. It also manages $46.47 billion in assets (as of March 2025), making it a strong player to lead in creating stablecoins. 

South Korea’s crypto market is growing fast, with over 16 million people using crypto exchanges. The excitement around cryptocurrencies, boosted by Donald Trump’s U.S. presidential win in November 2024, contributed to the market’s positive sentiment.

Meanwhile, despite positive sentiment following the announcement about KakaoBank’s stablecoin plans, its stock price didn’t rise much recently. On Thursday, it went up just 0.93% to 27,150 won ($19.60), after hitting 27,825 won ($20.10) the day before.

According to a May 2025 report by Fireblocks, stablecoins are getting popular globally. Around 90% of big tech and financial companies are looking into using them. Countries like Russia and Abu Dhabi are also working on their stablecoin projects.

Also Read: Democrats Question Bank Regulator on Trump’s USD1 Stablecoin Conflicts

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