Kakao Distances Itself From Kaia, Dimming Hopes for a 'Kakao Coin'

Kakao puts distance between itself and Kaia

Affiliates draw line, saying there are no business ties

The chances of Kaia joining Kakao's planned won stablecoin project as a mainnet partner are fading. Kakao's financial affiliates have recently denied any business links with the domestic blockchain platform, according to industry officials. That is dampening expectations for synergies between the two.

KakaoBank and Kakao Pay have recently been drawing a clear line between themselves and Kaia in connection with the won stablecoin business, industry officials said on June 25. A person familiar with the matter said Kaia is often viewed as a "Kakao coin," prompting frequent questions, but KakaoBank and Kakao Pay have been making clear publicly that they currently have no business under way with Kaia.

The cryptocurrency market had widely expected Kaia to take part after Kakao launched a task force led by KakaoBank and Kakao Pay for a won stablecoin business. Kaia's predecessor was Klaytn, a blockchain developed by Kakao. Kakao and Kakao Pay are also listed as members of Kaia's Governance Council, a key decision-making body.

That expectation was further fueled in June 2025, when Paulo, Kaia's game and consumer partnerships leader, wrote on X that Kakao affiliates hold Kaia and are active as Governance Council members. He also said Kakao Pay's trademark filing related to a won stablecoin "was not a coincidence."

Market prices have reflected those expectations. In January, after positive news emerged on the institutionalization of won stablecoins, shares of Kakao Pay and the price of Kaia jumped about 30% and 20%, respectively, from the previous day. Kakao Pay surged as a potential beneficiary of the stablecoin business, and Kaia rose in tandem as a related token.

KakaoBank and Kakao Pay are now refining a separate course centered on Kakao's task force. KakaoBank has outlined a plan covering both issuance and distribution of a won stablecoin. The goal is to obtain an issuance license once virtual-asset legislation is enacted, issue a won stablecoin directly and make it usable in everyday life like a bank account. The company also plans to expand the ecosystem by dividing roles among Kakao, Kakao Pay and consortium partners.

Kakao Pay is also speeding up work on the business structure and technical foundation needed to distribute stablecoins effectively at the company level, while helping design issuance and infrastructure through a consortium. On an earnings conference call last month, Chief Executive Officer Shin Won-keun said Kakao Pay wants to gain a competitive edge in the future stablecoin market by designing both issuance infrastructure and distribution development.

Still, as Kakao's financial affiliates distance themselves from Kaia, the case for collaboration is weakening. Kakao had previously maintained a cautious stance, saying cooperation with Kaia was under review in various ways. But as the project takes shape, the company may be shifting toward alternatives to the Kaia mainnet. Kakao Pay has already met with the Maru project, a won stablecoin chain initiative led by blockchain investment firm Hashed, and is known to be reviewing a range of potential partners.

One blockchain industry official said Kaia is now, in effect, more closely tied to Line than to Kakao. Kaia is also focusing more on stablecoin business efforts in Japan than in South Korea, the person said. From Kakao's perspective, the official added, Kaia may not have offered clear differentiation from global mainnets.

A KakaoBank official said the company has no specific business currently under way with Kaia. It is in a stage of broadly communicating with related companies and industry participants while reviewing various possibilities. A Kakao Pay official said it was difficult to confirm the matter and that all possibilities remain open.