South Korean digital bank KakaoBank is “actively considering” entering the country’s stablecoin market, according to CFO Kwon Tae-hoon. This potential move follows the Bank of Korea’s decision to shelve its central bank digital currency (CBDC) pilot program.
KakaoBank plans to participate in both the issuance and custody of stablecoins, aligning its strategy with evolving national digital asset policies. The bank has an advantage over other fintech companies, having already built and operated wallets and handled crypto exchanges during the now-canceled CBDC pilot. Furthermore, the bank has three years of experience issuing real-name accounts for crypto exchanges, which gives it a head start in meeting regulatory requirements for know-your-customer (KYC) and anti-money laundering (AML) frameworks.
This initiative is a collaborative effort within the larger Kakao ecosystem, with a task force involving key leaders from Kakao, KakaoPay, and KakaoBank. The company’s interest in stablecoins is part of a broader trend in South Korea, where retail investor interest in the sector is growing, as evidenced by the popularity of Circle stock among local investors. This also mirrors a similar trend in Hong Kong, where firms are seeking stablecoin licenses.
August 2025, Cryptoniteuae
