KakaoBank has considered its participation in South Korea’s stablecoin market, with discussions reportedly covering both issuance and custody services.
The consideration follows changes in the country’s digital asset policies and comes after the Bank of Korea’s (BOK) central bank digital currency (CBDC) project was halted in June 2025.
The BOK pilot, which had reached the testing stage with commercial banks, was discontinued after new legislation was introduced to allow domestic stablecoin issuance. KakaoBank officials said the bank had taken part in both phases of the now-cancelled project, including the development and operation of digital wallets and the facilitation of token exchanges and transfers.
Work underway across Kakao units
According to company representatives, an internal task force is collaborating with other businesses in the Kakao group, including KakaoPay, to develop a strategy for potential entry into the stablecoin sector. The bank has also highlighted its previous experience issuing real-name accounts for cryptocurrency exchanges over the past three years, suggesting it already meets many of the compliance requirements likely to apply to fiat-backed tokens.
The involvement of a licenced online bank marks a notable development in a domestic market that has seen increased interest from fintech companies since the BOK’s decision. At the same time, the Hong Kong market is preparing its own stablecoin licensing framework after limited uptake of the People’s Bank of China’s digital currency.
The increased focus on stablecoins has also influenced investor behaviour in South Korea, where shares in Circle, which was listed in June, recently became the most purchased foreign stock among retail investors according to Yahoo Finance.
Other notable developments from KakaoBank
In June 2025, KakaoBank secured approval to establish Thailand's first digital bank. Following this announcement, the licences were issued through a review made by Thailand’s Ministry of Finance, based on several central bank recommendations. The other two institutions that secured the approval were ACM Holding Company and a consortium led by state-run Krung Thai Bank.
Furthermore, authorities assessed business models, digital capabilities, and each group's potential in order to boost financial inclusion, particularly for underserved consumers and small businesses. This approval allowed Kakao Bank to continue to focus on meeting the needs, preferences, and demands of clients and customers in an ever-evolving market.
