KakaoBank Advances Stablecoin Development and Infrastructure Buildout

South Korea’s KakaoBank has pushed its won-pegged “Kakao Coin” stablecoin into full development, marking one of the most significant blockchain expansions by a major domestic financial institution to date. The digital bank is now building its own blockchain infrastructure while accelerating recruitment efforts to support the project.

According to the company’s latest hiring notices, KakaoBank is seeking backend engineers with deep knowledge of smart contracts, token standards and key-management systems—skills required to develop and operate stablecoin-ready architectures.

A company representative said the recruitment drive aims to strengthen internal research into blockchain and stablecoin models and evaluate how these technologies can be integrated into the bank’s financial-service offerings.

The initiative follows comments from KakaoBank CFO Kwon Tae-hoon, who stated during the bank’s H1 2025 earnings call that KakaoBank intends to enter the stablecoin sector as demand grows across Asia. Meanwhile, Kakao Group has already formed a dedicated stablecoin task force, holding weekly meetings with executives from KakaoBank, KakaoPay and other affiliated entities to consolidate the company’s broader digital-asset strategy.

STO Strategy and Growing Competition With Naver

Beyond stablecoins, KakaoBank is also laying the groundwork for its own security token offering (STO) services. The bank recently partnered with Korea Investment & Securities and Lucent Block to co-develop STO infrastructure, financial products and issuance systems.

These efforts coincide with South Korea’s newly amended Electronic Securities Act and Capital Markets Act, which officially prepare the regulatory basis for a domestic STO circulation market expected to open in the first half of 2026. Industry estimates suggest the local STO sector could grow to more than $287 billion by 2030.

KakaoBank’s expansion arrives amid intensifying competition among major South Korean tech firms, especially in the stablecoin and digital-payment sectors. Earlier this month, rival tech conglomerate Naver launched a pilot stablecoin wallet service in Busan through a partnership with venture firm Hashed and the Busan Digital Asset Exchange (BDAN).

Naver Financial is also moving toward a merger with Dunamu, the operator of South Korea’s largest crypto exchange, Upbit.

Both Kakao and Naver operate widely used consumer payment apps—KakaoPay and Naver Pay—with tens of millions of monthly users. Analysts expect that these platforms could provide an immediate on-ramp for stablecoin payments, settlements and tokenized assets, especially following President Lee’s pledge to introduce a KRW-pegged digital currency for commercial and international trade use.

As Korea accelerates its regulatory and technological footing, KakaoBank’s move into stablecoins and tokenized finance positions the company as a major contender in the country’s rapidly emerging digital-asset ecosystem.