Kakaobank, the banking arm of South Korea’s Kakao Corporation, is set to expand into the stablecoin market. The bank is reportedly planning to offer stablecoin services, including issuance and custody. This development aligns with South Korea’s shift towards crypto-friendly regulations under President Lee Jae-myung, who has introduced policies aimed at legalizing stablecoins in the country.
Kakaobank’s stablecoin push amid changing regulations
Kakaobank’s Chief Financial Officer, Kwon Tae-hoon, shared during the company’s first-half 2025 earnings call that the bank is reviewing methods such as stablecoin issuance and custody to “actively participate” in the digital asset market. The initiative is being led by Kakao’s Stablecoin Task Force, which involves leadership from KakaoPay and other key affiliates.
This move follows South Korea’s evolving crypto regulations. President Lee Jae-myung’s administration has been pushing for stablecoin legalization and broader crypto adoption, laying a favorable groundwork for Kakaobank to introduce its own stablecoin offerings. In June 2025, Kakaobank filed for stablecoin-related trademarks, signaling its intentions to move forward with digital currency initiatives.
Kakaobank’s strong position in the South Korean market
With 25.86 million users and $46.47 billion in assets under management, Kakaobank has a significant presence in South Korea. The bank already has extensive experience in digital assets, having participated in the Bank of Korea’s CBDC experiment and working on KYC and AML for virtual asset exchanges over the past three years. This expertise positions Kakaobank to effectively enter the stablecoin sector.
Market trends and growing interest in stablecoins
Despite Kakaobank’s stablecoin announcement, the stock has seen only modest gains. Following the news, shares reached a peak of 27,825 Korean won ($20.10) but fluctuated afterward. However, global interest in stablecoins continues to rise. A recent report from Fireblocks revealed that 90% of institutional players are exploring the use of stablecoins, which reflects the growing importance of these digital assets in the global financial industry.
In addition to South Korea, other regions have also shown interest in stablecoins. The Russian government is considering its own stablecoin, and financial institutions in Abu Dhabi are planning to issue a dirham-pegged stablecoin. These moves indicate that stablecoins are becoming a crucial part of the global financial system.