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The financial division of South Korean tech behemoth Kakao Corporation is allegedly intensifying efforts to provide stablecoin solutions in light of a regulatory transformation in the nation following the election of pro-crypto President Lee Jae-myung.
KakaoBank’s CFO Kwon Tae-hoon mentioned during the company’s earnings call for the first half of 2025 that the firm is “evaluating diverse methods such as issuance and custody,” and “intends to actively engage,” in the “digital asset ecosystem,” as reported by ZDNet Korea on Wednesday.
Kwon noted that this venture is being driven in collaboration with Kakao’s Stablecoin Task Force, which comprises upper management from its key subsidiaries, including KakaoPay.
KakaoBank’s stablecoin initiative comes after the election of President Lee Jae-myung in June, who has since advocated for several crypto-related regulations, including a legislation to legalize stablecoins.
KakaoBank establishing foundations
KakaoBank applied for trademarks related to stablecoins on June 23, concurrently with its competitor Kookmin Bank, a part of KB Financial Group. Eight additional South Korean banks are also aiming to introduce Korean won-pegged stablecoins by 2026.
Kwon reportedly stated that KakaoBank has prior experience in digital assets, having “successfully facilitated wallet openings, exchanges,” and participated in the Bank of Korea’s central bank digital currency pilot.
“Over the last three years, we have been providing real-name verified accounts for virtual asset exchanges while implementing risk-related measures such as Know Your Customer and Anti-Money Laundering monitoring,” Kwon explained.
KakaoBank has 25.86 million clients, accounting for about half of South Korea’s total population of 51.7 million, and manages assets worth $46.47 billion as of March this year.
Cryptocurrency exchange users in South Korea have exceeded 16 million, receiving a boost from US President Donald Trump’s electoral victory last November. This figure represents over 30% of the nation’s population.
KakaoBank stock remains stable
After KakaoBank submitted applications for stablecoin-related trademarks, its share price rose to 37,000 Korean won ($27) from approximately 30,400 won ($22.60), reflecting a 19.3% surge.
However, following the recent update to its stablecoin strategy, the share price experienced only minimal gains on Wednesday, peaking at $20.10 during the trading session, before declining to $19.43 by the closing bell.
In the latest trading session on Thursday, its share price saw a slight increase, rising 0.93% to trade at $19.60.
The bank has been functional since 2016 and was established through a collaboration between Korea Investment Holdings and Kakao Corp.
Related: XRP custody goes live for Korean institutions via BDACS amid ‘strong interest’
Global interest in stablecoins
Other major corporations and even nations are displaying an increasing inclination towards utilizing stablecoins in some capacity.
A report released on May 14 by enterprise-level digital asset platform Fireblocks discovered that 90% of institutional entities surveyed are considering the adoption of stablecoins in their operations.
An official from the Russian Finance Ministry proposed a plan for the government to create its own stablecoin in April, while three prominent institutions in Abu Dhabi collaborated to develop a new dirham-pegged stablecoin during the same period.
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