KakaoBank Pushes Forward With Korean Won-Backed Stablecoin Plans

KakaoBank is reportedly preparing the groundwork for a Korean won-backed stablecoin, processing the infrastructure up of caller rules that could fto banks bring regulated integer KRW into Korea’s retail and cross-border payments system.

An affiliate of Kakao Corp, South Korea’s astir ascendant net firm, the slope is reportedly advancing enactment connected a smart contract FX colony strategy that could signifier the ground of its planned KRW-backed stablecoin, according to an exclusive from Seoul-based fiscal quality outlet Newspim.

Decrypt has reached retired to Kakao Corp, arsenic good arsenic to representatives astatine Kaia, its blockchain improvement spouse formed from Kakao’s ain Klaytn web and LINE’s Finschia network.

The slope is reportedly gathering retired the method basal needed to enactment on-chain fiscal services, with enactment spanning astute declaration execution, token standards, full-node operations, and the back-end systems required to contented and negociate integer assets.

Work connected these aspects are aimed astatine supporting some a Korean won stablecoin and tokenized securities, positioning the slope to tally its ain infrastructure alternatively of relying connected outer networks, per the section report.

Earlier successful August, Kaia, Kakao’s blockchain partner, made trademark registrations for astatine slightest 4 Korean won-pegged stablecoins.

Kakao Prepares Korean Won Stablecoin connected Kaia arsenic Lawmakers Weigh New Rules

"Discussions related to stablecoins are highly delicate close now, truthful I'm not capable to remark connected the article,” Sam Seo, president astatine the Kaia DLT Foundation, said successful a connection shared with Decrypt. “For now, the lone happening I tin stock is that Kaia is successful talks with respective teams successful Korea astir a KRW stablecoin POC.”

Seo added that counterparties person “requested strict confidentiality,” and cited difficulties implicit disclosing immoderate different detail. “Separately, Kakao is the instauration that holds the largest magnitude of KAIA tokens, and we volition sermon ways to collaborate,” helium noted.

Seo’s statements were archetypal posted connected Kaia’s nationalist Discord server.

Developments for these imaginable offerings could acceptable the signifier for KakaoBank to fuse its banking, payments, and level services to an eventual stablecoin strategy erstwhile Korea’s pending authorities opens the market, adjacent arsenic Korean fiscal authorities pass of associated risks.

While stablecoins could assistance “automate transactions” and supply “real value” crossed payments and finance, “Korea's strict laws connected sending wealth overseas” remains the “biggest hurdle,” Joony Koo, co-founder and CEO of Spacebar.xyz, a gamified web3 meta frontend, told Decrypt.