KakaoBank, the prominent digital-only bank under the Kakao Group, is signaling its intent to enter South Korea's emerging stablecoin market—potentially playing a pivotal role in shaping the country’s digital assets landscape.

Strategic Positioning

During its first-half 2025 earnings call, CFO Kwon Tae-hoon revealed that the bank is actively exploring options around both issuing and custody of stablecoins. These efforts are moving forward in close coordination with Kakao Group’s internal Stablecoin Task Force, which includes KakaoPay and other senior leadership.

Strong Foundations in Digital Assets

KakaoBank brings significant experience to the table. Over the past three years, it has managed real-name account issuance for virtual asset exchanges and enacted robust KYC and AML monitoring processes. Moreover, the bank played an active role in the Bank of Korea’s CBDC pilot, successfully handling wallet creation, transactions, and remittances.

Regulatory Tailwinds

President Lee Jae-myung's crypto-forward policy agenda, which includes plans for a won-backed stablecoin ecosystem, has fueled interest across the financial sector. KakaoBank isn't alone in this push—several major banks have filed trademarks for KRW-pegged stablecoins with plans to launch by 2026.

Market Reaction & Outlook

Following trademark filings, KakaoBank’s stock price initially jumped—an investor-driven reaction fueled by optimism around private-sector stablecoin issuance.

However, broader regulatory uncertainty remains. While the government is moving forward with legal frameworks, the lack of clarity raises caution. Analysts argue that if regulatory standards stay in flux, gains from stablecoins could be capped.