South Korean digital banking leader KakaoBank is actively preparing to enter the stablecoin market, signaling a major strategic move as the country ushers in a new regulatory era for cryptocurrencies.
The bank aims to offer services related to the issuance and custody of stablecoins, aligning with growing government support for digital asset expansion.
At its first-half 2025 earnings call, KakaoBank’s Chief Financial Officer Kwon Tae-hoon revealed that the bank is reviewing various approaches to participate in the digital asset ecosystem. These include potential issuance of stablecoins pegged to the Korean won and custody services. This initiative is being coordinated with Kakao Group’s Stablecoin Task Force, comprising top leadership from affiliated companies such as KakaoPay, which also filed stablecoin-related trademarks in June 2025 alongside KakaoBank and other prominent South Korean banks.
KakaoBank’s push follows the election of pro-crypto President Lee Jae-myung in June 2025, who has aggressively championed laws to legalize stablecoins and integrate them into South Korea’s financial system. The president aims to foster a local won-backed stablecoin market to reduce capital outflows and promote fintech innovation.
With 25.86 million users—nearly half of South Korea’s population—and assets under management exceeding $46 billion as of March 2025, KakaoBank is well-positioned to lead in this space. The bank has built considerable digital asset expertise by issuing real-name verified accounts for virtual asset exchanges and implementing rigorous Know Your Customer (KYC) and Anti-Money Laundering (AML) controls for several years. KakaoBank has also participated in the Bank of Korea’s digital currency pilot projects, enhancing its technical capabilities in digital asset management.
South Korea is witnessing a surge in digital asset adoption, with over 16 million crypto exchange users. Major banks, including KB Kookmin Bank and Hana Bank, are also planning to launch won-pegged stablecoins by 2026, setting the stage for a competitive and regulated stablecoin ecosystem.
Notably, South Korean crypto custodian BDACS has officially rolled out institutional custody services for XRP, following its earlier partnership with Ripple in February.
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