South Korea’s Top Online Bank to Enter Stablecoin Market - Coinspeaker

Key Notes

• KakaoBank is preparing to enter South Korea’s stablecoin market.
• The initiative involves leaders from KakaoBank, Kakao Pay, and Kakao.
• The bank reported strong H1 2025 earnings, with nearly 26 million users.

KakaoBank, South Korea’s largest digital-only bank, is preparing to enter the stablecoin market. As per local media outlets, the bank is exploring both the issuance and custody of digital assets, signaling a pivot to blockchain-based financial services.

Backed by the broader Kakao Group’s resources and infrastructure, KakaoBank’s stablecoin ambitions could ramp up the adoption of stablecoins in South Korea’s rapidly growing crypto economy.

A Broader Effort by Kakao

The initiative is part of a larger effort by Kakao Group, which has formed a dedicated stablecoin task force comprising leaders from KakaoBank, Kakao Pay, and the parent company itself.

The internal collaboration highlights the merge of banking, payments, and digital platforms, critical components for the real-world use of stablecoins.

Related article: Ripple Labs Mulls RLUSD Stablecoin Expansion to EuropeUnlike speculative crypto assets, stablecoins are pegged to fiat currencies and used for remittances, payments, and settlements, making them more relevant to everyday users.

3 Years of Building

KakaoBank has spent the past three years building key infrastructure to support this transition. It has experience in providing real-name verified accounts for crypto exchanges and has been actively involved in risk management protocols such as KYC and AML systems.

The bank participated in the Bank of Korea’s central bank digital currency (CBDC) pilot program, managing digital wallets, facilitating transactions, and handling remittances.

With this foundation in place, KakaoBank is now turning its attention toward the issuance of a Korean won-pegged stablecoin.

A Strategy Mirroring US Companies?

KakaoBank’s integration with Kakao Pay, which has already filed trademark applications for stablecoin tickers, and its access to Kakao’s mobile platform infrastructure, including the KakaoTalk messaging app, offer a complete ecosystem for stablecoin issuance, distribution, and utility.

The setup mirrors successful models seen in the United States, where companies like PayPal and Stripe have introduced stablecoin functionality via their existing ecosystems.

Strong Financial Performance

KakaoBank’s entry into the stablecoin space comes amid a strong financial performance. In the first half of 2025, the bank reported a net profit of 263.7 billion won, up 14% from the previous year.

Deposits rose to 63.7 trillion won, and the user base expanded to nearly 26 million, almost half of South Korea’s population. The customer reach provides a massive advantage in promoting mainstream adoption of stablecoins once they are launched.

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