South Korea’s KakaoBank explores stablecoin issuance and custody services

KakaoBank, South Korea’s leading digital bank known for innovative mobile banking services and rapid user growth, is exploring stablecoin issuance and custody services, with plans to actively participate in the fast-growing market valued at approximately $275 billion.

The stablecoin move was confirmed by Tae-Hoon Kwon, Chief Financial Officer at Kakaobank Corp., during the company’s H1 2025 performance announcement on Wednesday. It was first reported by ZDNet Korea.

“Kakao Bank is exploring various approaches, including issuance and custody, to engage with the digital asset ecosystem,” Kwon said in a statement. “We’re building our capabilities in coordination with Kakao Group’s Stablecoin Task Force and will adapt proactively to market trends.”

Kwon said that the bank aims to leverage its existing infrastructure and experience in the crypto sector for stablecoins. Over the past three years, the bank has issued real-name verified accounts for virtual asset exchanges and implemented risk controls such as Know Your Customer (KYC) and Anti-Money Laundering (AML)-based monitoring, according to him.

Kwon added that the bank has also built technical expertise through its participation in central bank digital currency (CBDC) initiatives, citing operational experience from successfully handling wallet creation, exchanges, and remittances during the first and second phases of the Bank of Korea’s CBDC simulation experiment.

Kakao Group’s Stablecoin Task Force is a newly established initiative involving top leadership from its core affiliates, Kakao, KakaoPay, and Kakao Bank. These entities collaborate to develop and launch a Korean won–backed stablecoin.

In June 2025, KakaoPay applied for 18 stablecoin-related trademarks and patents with the Korean Intellectual Property Office (KIPO), aiming to develop a blockchain-based stablecoin pegged 1:1 to the Korean won.