Korean digital bank Kakabank is hoping to solidify its position in the stubcoin market and is reportedly reviewing a variety of entry strategies, including potentially won stubcoin.
summary
Kakaobank reviews Stablecoin’s issuance and custody services as part of its digital asset strategy. The bank’s initiative is led by the group-wide Stablecoin task force, including Kakaopay and other affiliates.
According to a report from a local media outlet, Kakaobank’s Chief Financial Officer Kwon Tae-Hoon confirmed that the company is assessing a variety of possibilities related to Stablecoins, including issuance and custody services for digital assets.
Is Kakaobank launching Stablecoin?
During Kakaobank’s revenue call for the first half of 2025, Kwon said the bank is “examined a variety of methods, such as issuance and custody,” and intends to “actively participate” in the digital assets sector.
According to ZDNET Korea, the initiative is led in conjunction with Kakao Group’s internal Stablecoin Task Force (TF), which includes leadership from key affiliates such as Kakaopay.
“For the past three years, we have issued real-name-verified accounts for virtual asset exchanges and operate risk-related measures such as Know Customer (KYC) and Anti-Money Laundering (AML)-based surveillance,” he said, noting that previous experience in digital asset infrastructure provides a strong foundation for this expansion.
Kakaobank also participated in the Bank of Korea’s Central Bank Digital Currency (CBDC) experiment, successfully conducting wallet creation, asset exchange and remittance tests.
According to Kwon, these experiences equip banks with both the technical and regulatory know-how needed to enter the Stablecoin sector.
The bank had not explicitly announced plans to issue stubcoins during the proceeds call, but past actions suggest that such moves may already be under consideration.
In June, Kakaobank quietly submitted multiple trademark applications to the South Korean Intellectual Property Bureau related to the provision of potential Stablecoin.
Applications containing brand names such as BKRW and KRWB cover a variety of categories, including cryptocurrency transaction software, blockchain-based payment platforms, and financial services including digital assets.
These submissions are not conclusive evidence of Stablecoin’s launch, but are consistent with the company’s broader interest in the fundamentals of digital finance and signal preparation.
Kakaobank officials later said the submission was made to “actively respond to the development of the Stablecoin market.”
Focusing on Korean stubcoins
Kakaobank’s announcement is announced as Stablecoins gains momentum in South Korea amidst regulatory changes introduced by President Lee Jae-Myung. Since the election this June, Lee has openly supported cryptocurrency innovation and has supported legislative efforts to legalize the issuance of stubcoins fixed in South Korea.
These policy shifts have sparked a surge in interest among major financial institutions. In fact, nine major Korean banks, including Kakaobank and Kookmin Bank, have submitted or published internal reviews aimed at launching their own winning Stablecoins by 2026.
While other banks are still in the planning stages, Fintech company fans and digital infrastructure provider Inishic recently announced Korea’s first winning stub coin, Kulwin. The token was backed by the South Korean victory at 1:1 and was introduced on August 5th in a controlled pilot phase.
And it’s not just Korea. Stubcoin has become a hot topic across global financial markets. Major economies, including the US, China and Japan, have disclosed plans to explore or launch their own stubcoin with financial giants such as Citigroup and JP Morgan.
Last month, Stablecoin’s market capitalization total growth for the 22nd consecutive month, with a significant increase in facility adoption, chain utility and centralized exchange trading volume, reaching a new all-time high of $2.2 billion.
