South Korean KakaoBank is reportedly coming into the rising stablecoin market with plans to launch a KRW-backed stablecoin this 12 months.
The corporate CFO Kwon Tae-hoon mentioned at KakaoBank’s first-half 2025 earnings name on Tuesday that the financial institution is “reviewing numerous strategies corresponding to issuance and custody associated to the digital asset ecosystem.”
“We plan to have interaction actively consistent with market adjustments,” Kwon famous, per a ZDNet Korea report on Wednesday.
Additional, Kakao Group, the father or mother IT agency, is making a stablecoin job pressure and holding weekly discussions to consolidate technique. CEOs Chung Shin-ah (Kakao), Shin Received-keun (KakaoPay), and Yoon Ho-young (KakaoBank) will probably be main the initiative.
Moreover, Kwon emphasised that KakaoBank has the chance administration and technical experience, noting the agency had participated in each phases now-cancelled Financial institution of Korea CBDC pilot.
President Pledges to Launch KRW-Pegged Coin
Following June 3’s election, the brand new authorities is now growing its personal monetary insurance policies in South Korea. Lively discussions on stablecoins are actually underway, with “international firms paying shut consideration.”
Apart from, the newly elected President Lee Jae-myung has pledged to launch a KRW-pegged coin to be used in enterprise and worldwide commerce.
The stablecoin pivot has triggered a wave of hypothesis in Korea’s markets. Based on Bloomberg, the USDC issuer Circle grew to become the most-traded inventory amongst Korean retail buyers.
“Circle appears to be establishing contacts with the Nationwide Meeting and monetary regulators as a result of it needs to take part within the home market,” unnamed home crypto trade govt advised Korean media outlet Newsway in June.
He opined that KRW stablecoin issuance was “nonetheless a great distance off.”
Nevertheless, Financial institution of Korea Governor Lee Chang-yong nonetheless seems skeptical about Lee Jae-myung’s authorities’s stablecoin plans, per the Kukmin Ilbo report.
Elsewhere in Hong Kong, the stablecoin invoice formally took impact on August 1, establishing a licensing regime for fiat‑referenced stablecoin issuers.
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