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Kakao Bank Advances Development of Won-Pegged Stablecoin

Kakao Bank Advances Development of Won-Pegged Stablecoin

KakaoBank is building a smart contract FX settlement system and blockchain infrastructure, laying groundwork for a KRW-backed stablecoin and on-chain financial services.

KAIA

Summary

KakaoBank is developing a smart contract-based foreign exchange settlement system intended to support its planned Korean won (KRW)-backed stablecoin. The initiative includes constructing blockchain infrastructure for on-chain financial services, such as token standards and full node operations. This technical advancement complements earlier progress, including Kaia’s August 2024 trademark filings and proof-of-concept discussions for the stablecoin, reflecting KakaoBank’s strategic move into regulated digital asset offerings.

Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value by pegging it to a reserve asset such as fiat currency.
  • Tokenized assets: Digital representations of physical or financial assets on a blockchain, enabling secure and efficient transfer or trading.
  • Full node: A blockchain participant that fully validates transactions and blocks, maintaining a complete copy of the blockchain ledger.