Kakao has officially entered the won-based stablecoin issuance. Kakao's blockchain subsidiary KAIA blockchain has officially formalized its business intent by registering four won-related trademarks this month, including 'KRWGlobal' and 'KRWKaia'.
Its biggest weapon is the overwhelming scale of 49 million monthly active users (MAU). As over 95% of the population uses Kakao services, it can secure a large user base immediately upon issuance. This means it can instantly solve the 'network effect' limitations experienced by existing stablecoins.
However, regulatory uncertainty still remains. The regulatory direction is still unclear, including the government's digital asset basic law, inter-party competing bills, and the Bank of Korea's priority bank issuance theory.
The industry is finding the true value of won-based stablecoins in cross-border payments. By resolving exchange costs and volatility associated with dollar-based stablecoin usage, it can provide a new payment infrastructure, especially for Korean companies operating in Asian markets.
Seo Sang-min, chairman of the KAIA DLT Foundation, stated that "the won-based stablecoin is a signal that Korea will legalize digital asset-based businesses", and attention is focused on how Kakao will reshape its digital financial ecosystem when regulations are finalized.
