KakaoBank is preparing to enter the stablecoin sector, aligning with South Korea’s national push to develop a regulated won-based digital currency market. This move positions KakaoBank as a key financial player in the country’s rapidly evolving crypto infrastructure.
KakaoBank Exploring Digital Asset Issuance and Custody
At its H1 2025 earnings presentation, CFO Kwon Tae-hoon revealed the bank is reviewing new ventures in the areas of stablecoin issuance and digital asset custody. He emphasized that the bank is actively collaborating with Kakao Group’s stablecoin task force, signaling internal coordination to lead innovation in regulated digital finance.
“Stability and technological prowess are the most critical factors for stablecoins,” Kwon stated, highlighting the importance of robust infrastructure in issuing or managing digital currencies.
Government Push Fuels Stablecoin Momentum
South Korea’s administration, led by President Lee Jae Myung, is prioritizing the development of a won-denominated stablecoin to prevent capital outflows and solidify monetary sovereignty in the face of rising global crypto adoption.
The government sees domestic stablecoin markets as a safeguard against foreign currency dependence and potential systemic risks. This has prompted stronger partnerships between the private sector and regulators, with KakaoBank emerging as a strategic participant.
Proven Track Record in KYC and AML Compliance
KakaoBank has spent the past three years providing real-name verified accounts for crypto exchanges, making it a trusted entity in Know Your Customer (KYC) and Anti-Money Laundering (AML) operations. This regulatory experience gives the bank a solid foundation for entering stablecoin markets with compliance-first frameworks.
KakaoBank’s move underscores South Korea’s ambition to become a leader in regulated digital finance infrastructure.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.