Kakao Corporation, a major player in South Korea’s banking sector, is reportedly ramping up its plans to offer stubcoin services. This comes in response to a shift in regulations following the election of President Lee Jae-myeong, known for his pro-crypto stance.
Kakaobank’s Chief Financial Officer, Kwon Tae-Hoon, mentioned that the company is exploring various approaches to engage in the “digital asset ecosystem,” including aspects like issuance and custody. In a recent announcement, he expressed a commitment to being more involved in this space.
Kwon noted that the initiative is a collaborative effort with Kakao’s Stablecoin task force, which includes leadership from key subsidiaries, such as Kakaopay.
This move to develop a Stablecoin aligns with President Lee Jae-myeong’s election in June, which has energized the cryptocurrency sector.
Kakaobank’s Foundations
On June 23rd, Kakaobank applied for a trademark related to Stablecoins, mirroring the actions of Kookmin Bank, which is part of KB Financial Group. Interestingly, a total of eight other banks in South Korea are also aiming to introduce their own stubcoins by 2026.
Kwon pointed out that Kakaobank has previous experience in digital assets, having successfully launched a digital wallet and participated in the Central Bank of Korea’s digital currency trials. He remarked, “For the last three years, we’ve established verified accounts for virtual asset exchanges and implemented measures like anti-money laundering protocols based on customer knowledge.”
With approximately 25.86 million users, Kakaobank manages around $46.47 billion in assets, which is notable given that this represents nearly half of South Korea’s total population of 51.7 million.
Interestingly, the user base for cryptocurrency exchanges in South Korea has crossed the 16 million mark, significantly boosted by various factors, including last November’s election of former U.S. President Donald Trump. This figure amounts to over 30% of the country’s populace.
Kakaobank’s Stock Performance
Following the trademark applications for Stablecoin, Kakaobank’s stock price saw an increase from about 30,400 won ($22.60) to 37,000 won ($27), representing a growth of 19.3%. However, the stock only experienced a modest gain after the latest Stablecoin developments, peaking at $20.10 during trading before settling at $19.43.
In the most recent trading session on Thursday, the stock improved slightly, rising by 0.93% to $19.60.
Kakaobank has been in operation since 2016, established through a partnership between Korea Investment Holdings and Kakao Corp.
Global Interest in Stablecoins
There’s a growing worldwide interest in Stablecoin adoption as companies and nations seek stability in financial transactions. A report from Fireblocks, a digital asset platform, indicated that 90% of institutional respondents were exploring the potential of Stablecoins.
In April, officials from the Russian Treasury announced plans to create their own stubcoin, while major institutions in Abu Dhabi also teamed up that month to develop a Dirham Page stubcoin.
