KakaoBank is set to enter the rapidly expanding stablecoin market in South Korea, according to recent reports. During the company's earnings call for the first half of the year, CFO Kwon Tae-hoon stated that KakaoBank is actively exploring opportunities in stablecoin issuance and custody, aligning its participation with the country's evolving digital asset policies. Kwon added that the company plans to adapt to market changes and is working with other Kakao units to develop a unified strategy. The move marks the entry of a regulated online bank into the stablecoin sector, following the Bank of Korea's decision to shelve its central bank digital currency pilot in June.
KakaoBank's experience in participating in the cancelled pilot and its compliance work in issuing real-name accounts for crypto exchanges have provided the company with a strong foundation in operational and regulatory matters. The company is part of a task force within the Kakao ecosystem, working alongside KakaoPay and the parent group to explore stablecoin opportunities.
The shift towards stablecoins has sparked significant interest and speculation in Korea's markets, with Circle stock becoming a highly sought-after foreign equity among retail investors. This development is also happening in parallel with Hong Kong's stablecoin plans, where local firms are seeking to obtain issuance licenses.