KakaoBank Plans Stablecoin Services After Crypto Policy Shift

KakaoBank, South Korea’s largest digital-only bank, is preparing to expand into the stablecoin sector, aligning with the country’s recent pro-crypto political shift. The move follows President Lee Jae-myung’s election and the introduction of crypto-friendly legislation, including a push to legalize stablecoins. KakaoBank confirmed during its latest earnings call that it is actively exploring stablecoin issuance and custody services.

Good to know

• KakaoBank plans to offer stablecoin issuance and custody services in South Korea.
• The project involves collaboration with KakaoPay and other Kakao affiliates.
• Trademark filings and regulatory groundwork are already underway.

CFO Kwon Tae-hoon said during the H1 2025 earnings call that the bank is exploring multiple options for entering the digital asset space. He confirmed KakaoBank’s intention to “actively participate” in South Korea’s growing crypto economy. The initiative is being led by a Stablecoin Task Force that includes senior leadership from Kakao’s core fintech arms, such as KakaoPay.

KakaoBank Eyes Stablecoin Services as South Korea Moves Toward Crypto Regulation

The bank has already filed stablecoin-related trademarks, coinciding with similar filings by Kookmin Bank and at least eight other major banks, all aiming to launch Korean won-pegged stablecoins by 2026. KakaoBank’s early move signals that competition in the local stablecoin market is picking up fast.

Kwon noted that the bank is not starting from scratch. KakaoBank has participated in the Bank of Korea’s CBDC pilot, and it currently supports real-name verified accounts for virtual asset exchanges. It also runs systems for KYC and AML monitoring — infrastructure that puts it in a strong position for digital asset expansion. Kwon said:

“For the past three years, we have been issuing real-name verified accounts for virtual asset exchanges and have been operating risk-related measures such as Know Your Customer and Anti-Money Laundering-based monitoring.”

As of March, KakaoBank manages $46.47 billion in assets and serves more than 25.8 million users — about half of South Korea’s population. The bank launched in 2016 as a joint effort between Korea Investment Holdings and Kakao Corp and has quickly grown into one of the country’s most influential financial platforms.