Kakao Group Teams Up With Circle to Pursue Korean Won Stablecoin, Blockchain Payments

Kakao Group, including Kakao Corp., Kakao Pay Corp. and KakaoBank Corp., has teamed up with Circle Internet Group Inc., the issuer of the USDC stablecoin, to pursue a Korean won stablecoin and build blockchain-based payments infrastructure.

Kakao Group said on July 23 that it signed a strategic memorandum of understanding with Circle on cooperation in digital-asset technology. The companies plan to explore business models that combine Kakao Group's digital platforms and financial services with Circle's blockchain and global payments infrastructure.

The partnership will focus on won-based digital assets and tokenized financial services. The two sides are reviewing ways to use Circle's payments infrastructure to improve global payments, cross-border remittances and merchant settlement. They also plan technical cooperation to strengthen interoperability between blockchain networks and existing financial systems.

Kakao Group aims to connect KakaoTalk's platform reach with Kakao Pay's payment services and KakaoBank's financial capabilities. It is also considering shared infrastructure that would allow domestic companies to develop related services, in addition to a won stablecoin initiative led by the group.

The agreement is an MOU to review potential cooperation rather than a binding commercial contract. The companies did not disclose a detailed issuance structure for a won stablecoin or a timeline for launching services. The project's direction will become clearer as South Korea finalizes its regulatory framework, including the proposed Digital Asset Basic Act and rules governing who may issue won stablecoins.

Kash Razzaghi, Circle's chief commercial officer, said South Korea is leading the global digital market and has a strong foundation for financial innovation. Circle will seek opportunities that fit the regulatory environment by combining its global infrastructure with Kakao Group's platform and financial ecosystem, he added.

Shin Won-keun, chief executive officer of Kakao Pay and head of Kakao Group's joint stablecoin task force, said competitiveness in digital assets cannot be built on technology alone. Kakao Group will work with Circle to prepare early for a Korean-style digital-asset ecosystem based on its experience in platforms, payments and financial services, he said.