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Stablecoin Surge – KakaoBank Teams Up with KakaoPay to Launch Stablecoin Services by 2026
Stablecoin Surge – South Korea’s IT giant Kakao Corporation is accelerating its stablecoin initiatives through its banking arm, KakaoBank, as the country embraces a more crypto-friendly regulatory environment following the election of pro-crypto President Lee Jae-myung.
KakaoBank’s Strategic Move into Stablecoins
During its first-half 2025 earnings call, KakaoBank’s CFO Kwon Tae-hoon revealed the company is actively exploring various methods related to stablecoins, including issuance and custody services. He emphasized KakaoBank’s intent to play an active role in the digital asset ecosystem, collaborating closely with Kakao’s Stablecoin Task Force, which includes key leaders from its affiliate KakaoPay.
This initiative comes hot on the heels of President Lee’s election in June, who has since championed laws to legalize stablecoins and promote crypto innovation in South Korea.
Strong Foundations and Market Position
KakaoBank filed for stablecoin-related trademarks on June 23, alongside rival Kookmin Bank, as part of a wave of South Korean banks preparing to launch Korean won-pegged stablecoins by 2026. Kwon highlighted KakaoBank’s prior experience with digital assets, including wallet operations, exchange services, and participation in the Bank of Korea’s central bank digital currency (CBDC) experiments.
With over 25 million users—roughly half of South Korea’s population—and managing assets totaling $46.47 billion as of March 2025, KakaoBank is well-positioned to leverage the booming interest in crypto. Notably, South Korea’s crypto exchange user base has surpassed 16 million, spurred in part by geopolitical and market factors.
Market Reaction and Global Stablecoin Momentum
Following the trademark filings, KakaoBank’s stock jumped nearly 20%, though gains have since leveled off amid cautious investor sentiment. The bank, founded in 2016 through a partnership between Korea Investment Holdings and Kakao Corp, continues to make steady progress.
Globally, interest in stablecoins is surging. A report by Fireblocks indicates 90% of institutional players are exploring stablecoin use, while countries like Russia and UAE are pursuing their own stablecoin projects.
As South Korea paves the way for a regulated stablecoin future, KakaoBank’s proactive stance places it at the forefront of this rapidly evolving market.
