KakaoBank Races to Launch Won Stablecoins Backed by Massive User Bases
Why Is KakaoBank Building a Korean Won Stablecoin Now?
KakaoBank, South Korea’s leading digital bank and a major arm of the Kakao tech ecosystem, has begun actively developing its own Korean won-pegged stablecoin. According to a report from Newspim, the bank’s stablecoin initiative has moved from internal review to full development, signaling Kakao’s intent to compete aggressively in the country’s race for digital currency dominance.
Evidence of the shift appears on KakaoBank’s official website, where the company has posted openings for blockchain backend engineers. The job descriptions emphasize smart contract expertise, token standard engineering and experience operating full nodes—clear indications that the bank is constructing an on-chain asset, not merely exploring a pilot.
The digital bank’s CFO, Kwon Tae-hoon, previously stated during its H1 2025 earnings call that KakaoBank was assessing , including issuing or custodizing digital assets. Behind the scenes, KakaoBank and other Kakao Group financial divisions formed a task force earlier this year to evaluate the launch of a won and build a broader digital finance ecosystem.
KakaoPay, the group’s payments arm, later filed six trademark applications for potential stablecoin tickers: PKRW, KKRW, KRWP, KPKRW, KRWKP and KRWK. These filings appear to blend Kakao or KakaoPay branding with “KRW,” hinting at multiple product concepts or branding tests.
Investor Takeaway
How Does Naver’s Strategy Increase Competitive Pressure?
KakaoBank’s move comes as its largegest rival, Naver, accelerates its own digital asset plans. Naver Financial is reportedly progressing toward a merger with Upbit, the country’s largest cryptocurrency platform and a dominant player in the Asian . A merger of that scale would give Naver immediate , platform infrastructure and millions of crypto users.
Naver is also developing a wallet service for a local stablecoin project in Busan, a city that aims to become South Korea’s blockchain hub. Its payments platform, NaverPay, counts 30 million monthly users—already over half the country’s population.
KakaoPay, however, is larger. With 42 million registered members and 24 million active monthly users, Kakao retains a commanding position in South Korea’s fintech market. By launching a KRW-pegged stablecoin, Kakao is creating a new on-chain financial layer for its user base.
The competition now resembles a digital asset arms race between the two companies that already dominate Korea’s internet and mobile landscape: Kakao through its messaging app KakaoTalk, and Naver through its search and commerce ecosystem.
What’s Driving the Tech Giant Race for a Won Stablecoin?
The sudden acceleration can be traced back to South Korea’s political shift. President Lee Jae Myung, elected earlier this year, has named KRW stablecoins as a national priority. His stated goal: protect monetary sovereignty and reduce dependence on dollar-backed stablecoins such as USDT and USDC.
But the political momentum has collided with regulatory friction. Several lawmakers introduced proposals for a local stablecoin framework, but legislative progress stalled. Complicating matters further, the Bank of Korea has taken a firm stance that only registered banks—not fintechs or platforms—should be allowed to issue won-backed stablecoins.
This position has drawn pushback from industry players, who argue that limiting issuers would sluggish innovation and prevent the emergence of competitive market-driven KRW stablecoins.
KakaoBank’s involvement gives the government an ideal middle ground: a fully licensed, regulated bank issuing a compliant, large-scale stablecoin backed by an ecosystem of 20–40 million users.
Investor Takeaway
What Comes Next for KakaoBank and South Korea’s Stablecoin Market?
With development underway, KakaoBank is likely preparing the technical architecture for an on-chain KRW token, including smart contract deployment, custody integrations and node infrastructure. Questions now center on how rapidly the bank can launch—and whether it will do so independently or through a consortium structure with KakaoPay or other subsidiaries.
The competition with Naver will intensify as both companies attempt to leverage their massive ecosystems:
- Kakao through the KakaoTalk messaging superapp
- Naver through its search engine, e-commerce channels and its potential Upbit merger
South Korea’s stablecoin race is no longer theoretical. It is now a direct clash between the country’s two largest tech giants—each commanding tens of millions of users—and a government intent on establishing a sovereign digital currency alternative.
Whether legislative alignment arrives quick enough remains the largegest uncertainty. But with KakaoBank now moving beyond planning into active development, a appears closer to real deployment than ever before.
