KakaoBank Sets Course for Its Own KRW-Pegged Stablecoin and Expands Workforce

KakaoBank, a leading financial institution in South Korea, is moving forward with its plans to develop “Kakao Coin,” a stablecoin pegged to the Korean won (KRW).

Key Takeaways

KakaoBank is actively developing a KRW-pegged stablecoin called “Kakao Coin.”
The bank is hiring blockchain service backend developers with expertise in smart contracts and token standards.
KakaoBank is launching a security token offering (STO) and has partnered with Korea Investment & Securities and Lucent Block.
South Korea's regulatory amendments will support the STO market opening in H1 2026, with a projected market value of $287 billion by 2030.
KakaoBank's rival, Naver, has also introduced a stablecoin wallet service in Busan.

KakaoBank stablecoin South Korea

KakaoBank Moves into Stablecoin Development

Kakao is reportedly creating a blockchain infrastructure to support its stablecoin initiative and has begun recruiting talented backend developers for its blockchain services. Candidates must possess a strong understanding of smart contracts and token standards.

According to a local media report, new hires will focus on designing innovative blockchain-based services, managing cryptographic keys, and building transaction processing systems.

"This recruitment aims to enhance our workforce for research on blockchain and stablecoin technologies and explore their potential applications in financial services," stated a Kakao Bank official.

During KakaoBank's earnings call for the first half of 2025 in August, CFO Kwon Tae-hoon announced that the firm is entering the expanding stablecoin market. Additionally, Kakao Group has set up a task force dedicated to stablecoin development and is holding weekly strategic discussions.

KakaoBank Prepares for Security Token Offering

In parallel, KakaoBank is planning a security token offering (STO) that leverages blockchain technology. The bank has formed alliances with Korea Investment & Securities and Lucent Block to create STO financial products and systems.

This initiative follows recent legislative changes in South Korea, specifically updates to the Electronic Securities Act and the Capital Markets Act, which facilitate token securities issuance. These modifications will pave the way for an STO market expected to launch in the first half of 2026.

The South Korean financial sector anticipates that the STO market could reach a value of approximately $287 billion by 2030.

KakaoBank Competes in the Stablecoin Arena

KakaoBank’s announcement comes shortly after fellow South Korean tech giant Naver unveiled a new wallet service for local stablecoin use in Busan city.

Naver has partnered with Hashed, a venture capital firm, and the Busan Digital Asset Exchange (BDAN) for this service. Additionally, Naver Financial is moving towards merging with Dunamu, the operator of Upbit, South Korea's largest cryptocurrency exchange.

Like KakaoPay, Naver has its own payment platform, which is utilized by 30 million individuals each month. Both Kakao and Naver are positioned to leverage their extensive user bases to gain traction in the stablecoin market.