Kakao Group Partners with Circle to Develop Won-Backed Stablecoin Payment System

Together, the two companies plan to build a payment system for a stablecoin linked to the South Korean won, making digital payments easier, faster, and more efficient in South Korea.

Kakao Group and Circle will work together on won-based digital assets and tokenized financial services. They also plan to explore global payments, cross-border money transfers, and faster merchant payments using Circle's payment technology.

The two companies will also cooperate on technical development. Their goal is to improve the connection between blockchain networks and traditional financial systems, making digital payments more efficient and reliable.

Kakao Group plans to combine the strengths of KakaoTalk, Kakao Pay, and KakaoBank to support the new payment ecosystem. The company is also looking at building shared infrastructure that other South Korean businesses can use to create stablecoin-related services.

The agreement is currently a memorandum of understanding (MOU), meaning it is an initial partnership and not a final business deal. Details about how the won-pegged stablecoin will be launched or when it will become available have not yet been announced. The project will move forward as South Korea finalizes its digital asset regulations.

"South Korea is a country that leads the global digital market and possesses a solid foundation for financial innovation," said Kash Razzaghi, Chief Commercial Officer at Circle. "By combining Circle's global infrastructure with Kakao Group's platform and financial ecosystem, we will seek innovation opportunities suited to the regulatory environment."

Shin Won-geun, CEO of Kakao Pay and head of Kakao Group's stablecoin joint task force, emphasized, "The competitiveness of digital assets is not achieved through technology alone. Based on our platform, payment, and financial service experience, we will proactively prepare a Korean-style digital asset ecosystem with Circle."

With this partnership, Kakao Group has become one of the most active South Korean technology companies investing in stablecoin infrastructure and digital payment technology.

USDC, issued by Circle, is the second-largest stablecoin in the world after Tether (USDT). Circle is known for following regulations and has received approvals from regulators in major markets, including the United States and Europe.

By partnering with Circle, Kakao could strengthen its ability to meet global regulatory standards. This may help the company play a leading role in shaping South Korea's future digital asset and stablecoin market.

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