The banking arm of South Korean IT big Kakao Corporation is reportedly ramping up plans to supply stablecoin providers amid a regulatory shift within the nation after the election of pro-crypto president Lee Jae-myung.
KakaoBanks’ chief monetary officer Kwon Tae-hoon stated through the firm’s first-half 2025 earnings name that the corporate is “reviewing numerous strategies corresponding to issuance and custody,” and “plans to actively take part,” within the “digital asset ecosystem,” ZDNet Korea reported on Wednesday
Kwon added that the initiative is being spearheaded in cooperation with Kakao’s Stablecoin Task Force, which incorporates high management from its core associates together with KakaoPay.
KakaoBanks’ stablecoin transfer follows the election of President Lee Jae-myung in June, who has since pushed ahead with numerous crypto-related legal guidelines, together with a invoice to legalize stablecoins.
KakaoBank laying groundwork
KakaoBank filed for stablecoin-related emblems on June 23, concurrently rival Kookmin Bank, a subsidiary of KB Financial Group. Eight different main South Korean banks are additionally planning Korean won-pegged stablecoins to launch by 2026.
Kwon reportedly stated KakaoBank already has expertise in digital belongings, having “efficiently carried out pockets opening, exchanges,” and took part within the Bank of Korea’s central financial institution digital foreign money experiment.
“For the previous three years, now we have been issuing real-name verified accounts for digital asset exchanges and have been working risk-related measures corresponding to Know Your Customer and Anti-Money Laundering-based monitoring,” Kwon stated.
KakaoBank has 25.86 million customers, representing roughly half of South Korea’s inhabitants of 51.7 million, and $46.47 billion in belongings underneath administration as of March this 12 months.
Crypto trade customers in South Korea have additionally surpassed 16 million, after receiving a lift from US President Donald Trump’s election win final November. The determine represents over 30% of the nation’s inhabitants.
KakaoBank inventory stays flat
Previously, after KakaoBank filed for stablecoin-related emblems, its inventory value jumped to 37,000 Korean received ($27) from $22.60, a 19.3% improve.
However, following the newest replace to its stablecoin plans, the share value made small positive aspects on Wednesday, rising to a peak of 27,825 received ($20.10) for the buying and selling session, earlier than dropping to 26,900 received ($19.43) by the bell.
In the newest buying and selling session on Thursday, its inventory value solely made a small achieve, rising 0.93% to commerce at 27,150 Korean received ($19.60).
The financial institution has been working since 2016 and was based by way of a partnership between Korea Investment Holdings and Kakao Corp.
Related: XRP custody goes dwell for Korean establishments by way of BDACS amid ‘robust curiosity’
Stablecoins use eyed round world
Other giant firms and even international locations have been displaying an rising curiosity in utilizing stablecoins in some kind as nicely.
A May 14 report from enterprise-grade digital belongings platform Fireblocks discovered that 90% of institutional gamers surveyed are exploring using stablecoins of their operations.
Meanwhile, a Russian finance ministry official floated a plan for the federal government to develop its personal stablecoin in April, whereas a trio of main Abu Dhabi establishments teamed as much as create a brand new dirham-pegged stablecoin in the identical month.
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