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Kakao, Kakao Pay and KakaoBank have signed a strategic memorandum of understanding with Circle to explore blockchain payment infrastructure and won-denominated digital asset services in South Korea.
The companies will assess whether Circle’s global stablecoin technology can connect Kakao’s messaging, payments, and banking ecosystem with international digital finance networks. The agreement is exploratory and does not confirm the issuance of a won stablecoin or a commercial launch date.
KakaoTalk, Kakao Pay and KakaoBank Form Local Payment Stack
Kakao plans to combine KakaoTalk’s consumer platform with Kakao Pay’s payment network and KakaoBank’s regulated banking services. The parties will review payment, settlement, and tokenized financial products involving won-based digital assets.
Circle is expected to contribute blockchain and global payment infrastructure expertise, including technology that could link a domestic won token to international stablecoin rails. The companies have not disclosed which blockchains, wallets, or Circle products would be used.
Toss and Toss Bank Sign Separate Circle Agreements
Circle signed separate agreements with Toss and Toss Bank on the same day. Those partnerships show that the USDC issuer plans to provide infrastructure to several South Korean financial platforms rather than backing one exclusive won stablecoin project.
The separate agreements also point to growing competition among Korean consumer-finance platforms as lawmakers prepare rules for stablecoin issuance and distribution.
KakaoBank Wallet Could Support Transfers, Payments, and Investments
KakaoBank and Kakao Pay have already been recruiting staff for stablecoin development. KakaoBank has outlined a wallet service that could connect won stablecoin transfers, payments and investments inside its banking app.
Kakao Group also established a joint task force involving Kakao, Kakao Pay and KakaoBank to prepare its stablecoin strategy. The companies have said detailed plans will depend on South Korea’s final legislation governing issuance and distribution.
Circle Could Connect Won Tokens to USDC Payment Rails
Circle has said it intends to work with local issuers and provide connective infrastructure rather than issue its own won-denominated stablecoin.
Its proposed model could allow a Korean bank or consortium-issued token to operate domestically while connecting with USDC for cross-border payments, remittances and treasury settlement.
That structure would leave Korean institutions responsible for local issuance while Circle supports international payment connectivity.
Kakao Stablecoin Launch Depends on South Korean Legislation
The agreement does not authorize Kakao to issue or distribute a stablecoin. The planned structure would give Kakao a consumer-facing distribution channel through KakaoTalk while keeping banking and payment functions within its financial subsidiaries.
The next step is a feasibility review covering product design, regulatory requirements and technical integration while South Korean lawmakers complete the country’s stablecoin framework.
