KakaoBank explores a won-backed stablecoin amid South Korea’s regulatory shift.
The move taps into a $2.8 billion crypto market with 30% growth in 2024.
South Korea ranks top five globally for crypto transactions in 2025.
South Korea’s digital finance landscape is heating up with KakaoBank, a leading online lender, exploring the issuance of a won-backed stablecoin and digital asset custody services.
This move, highlighted in a recent Cryptonews post featuring the South Korean flag alongside a Bitcoin coin, follows the Bank of Korea’s decision to halt its Central Bank Digital Currency (CBDC) pilot in favor of private-sector stablecoin initiatives. The shift reflects South Korea’s evolving regulatory framework, which saw new legislation in 2024 designed to foster innovation while ensuring compliance, amid a crypto ownership rate of 25% among adults aged 20-50, according to a Bank of Korea report.
KakaoBank’s strategic pivot positions it at the forefront of the country’s fast-growing stablecoin sector, valued at a potential $2.8 billion with a 30% market growth in 2024, as reported by industry analysts. The bank’s participation in a weekly stablecoin-focused task force alongside KakaoPay and parent company Kakao underscores a coordinated effort to capture this emerging market. This initiative, led by CEOs Chung Shin-ah, Shin Won-keun, and Yoon Ho-young, leverages South Korea’s advanced blockchain infrastructure, earning it a top-five global ranking for crypto transactions in the 2025 Chainalysis report.
The move also challenges the dominance of U.S.-centric stablecoins like Tether, with a won-backed alternative potentially reducing capital flight, a trend supported by a 2023 Bank for International Settlements study. This development taps into South Korea’s tech-savvy culture, where a robust gaming industry and political uncertainties have fueled cryptocurrency enthusiasm.
However, the success of KakaoBank’s stablecoin will depend on regulatory clarity and public adoption. As the global stablecoin market evolves, South Korea’s embrace of localized digital assets could set a precedent for other nations. Stay tuned for updates as KakaoBank navigates this transformative phase in the crypto ecosystem.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
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