KakaoBank, with more than 23 million users, has begun active development of a won-backed stablecoin designed to leverage its large retail base and integration with KakaoTalk. The initiative aims to build proprietary infrastructure and commercial-intent tokens while facing unresolved regulatory parameters that may ultimately shape governance and ownership.
KakaoBank transitions to technical execution and market expansion
KakaoBank has entered a development phase focused on building its own blockchain and hiring talent specialized in smart contracts and token standards. The institution has filed trademark applications for PKRW, KRWK and KRWP, signaling branding preparation and parallel work on STO frameworks in cooperation with Korea Investment & Securities and Lucent Block. Additionally, the bank has expanded internationally by securing a virtual banking license in Thailand.
The strategic incentive was captured by Joony Koo, CEO of Spacebar.xyz, who argued that integrating digital assets is now unavoidable for major tech firms. This view reinforces the rationale for scaling distribution networks as a competitive edge against both technology and financial incumbents.
KakaoBank’s operational roadmap unfolds amid regulatory ambiguity. The project intersects with a jurisdictional conflict between the Bank of Korea and the Financial Services Commission, particularly around the proposal that banks hold at least 51% of stablecoin-issuing entities to mitigate systemic risks. The Digital Asset Basic Act, the core legislative framework, remains postponed and could be delayed beyond 2025, despite the fact that stablecoin transaction volumes already surpass 60 trillion won.
Competitively, the market is far from uncontested. Naver’s post-merger entry with Dunamu, the movement of an eight-bank consortium, BDACS’s KRW1 product alongside Woori Bank, and the Solana Foundation’s plans with Wavebridge illustrate a rapidly diversifying landscape. Expected rollouts extending into 2026 indicate mounting pressure for regulatory clarity and market positioning.
From an on-chain and off-chain governance perspective, concentration of users and integration with messaging platforms introduce centralization risks. The suggested 51% ownership requirement for banks could shape voting power distribution, narrowing the scope for hybrid or community-driven governance models.
KakaoBank aims to convert user scale into presence within digital value networks through a won-denominated stablecoin. Its progress is material, but long-term viability will hinge on regulatory outcomes and the architecture of issuer-level control. Market multipolarity will define how incentives and authority are allocated between institutions and retail participants.
