Kakaobank is preparing to enter the South Korea Stable Stablescoin sector, according to local relationships.
During his call for results in the first half on Tuesday, Kakaobank’s financial director Kwon Tae-Hoon, said that the company “actively envisaged” roles in the program and stable guard, participation aligned with the country’s digital change policies.
“We plan to act actively in accordance with market changes,” said Kwon, adding that the Kakaobank internal working group is working with other Kakao units to consolidate the strategy.
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This decision adds a regulated online bank to the List of Korean Fintechs that jump into the Stablecoin race after the Korean Bank pilot (BOK) has put its Central Bank (CBDC) digital currency in June.
The project, as previously pointed out Coindesk, had reached the test phase with commercial banks and suddenly stopped after the administration of President Lee Jae-Myung submitted legislation allowing the local issuance of Stablecoins.
Kwon underlined Kakabank’s technical preparation, noting that the company had participated in the two phases of the Bok driver now channeled.
“We have built and exploited portfolios and managed exchanges and transfers,” he said, pointing to operational experience that most companies in the sector cannot yet claim.
He also cited three years of compliance work issuing real accounts for crypto exchanges, which gives the bank one step ahead in the implementation of the type of KYC and AML frames, regulators are likely to request fiat-poignate tokens.
Kakaobank is part of a weekly working group focused on the stablescoinds within the Kakao ecosystem, working alongside Kakaopay and the parent group. CEOs Chung Shin-Ah (Kakao), Shin Won-Keun (Kakaopay) and Yoon Ho-Young (Kakabank) lead the initiative.
The Stablecoin pivot sparked a wave of speculation and retail activity on the Korea markets. Circle Stock, which has become a public in June, has become the most purchased foreign equity among Korean retail investors.
This decision occurs in the parallel stablecoin plans of Hong Kong, where local companies line up to obtain a program license after the interest of the Banque Populaire de China CBDC failed to materialize.
