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Jeremy Allaire, CEO of Circle (center), Yoon Ho-young, CEO of Kakao Bank (left), and Shin Won-keun, CEO of Kakao Pay (right), pose for a commemorative photo during a visit to the Kakao Pay office in Pangyo, Gyeonggi Province, last April / Photo courtesy of Kakao Pay

Kakao Group has partnered with global stablecoin firm Circle to build next-generation digital asset infrastructure, including Korean Won (KRW)-denominated stablecoins. Amid accelerating discussions on institutionalizing digital assets, the strategy aims to proactively establish payment and settlement infrastructure and a foundation for tokenized financial services in collaboration with the global blockchain company.

On July 23, Kakao Group announced that Kakao, Kakao Pay, and Kakao Bank signed a strategic memorandum of understanding (MOU) with Circle Internet Group to collaborate in blockchain-based payment infrastructure and digital asset technology fields.

The two sides plan to combine Kakao Group's platform and financial service ecosystem with Circle's global blockchain and payment infrastructure capabilities to jointly discover business opportunities in compliant payment, settlement, and digital asset integration.

The areas of cooperation span KRW-based digital assets and overall tokenized financial services. Utilizing Circle's payment infrastructure, they will review global payments, cross-border remittances, merchant settlements, and measures to secure interoperability between blockchain networks and traditional financial systems. Based on this, Kakao Group plans to lay the groundwork for KRW stablecoins as well as enable various domestic business operators to participate in the digital asset ecosystem.

Kakao Group has been preparing a foundation for digital asset utilization by linking Kakao Pay and Kakao Bank's financial services centered around KakaoTalk. Taking this agreement as a stepping stone, the group intends to expand cooperation with global digital asset infrastructure firms and initiate the construction of a Korean-style digital asset ecosystem in earnest.

Shin Won-keun, CEO of Kakao Pay and co-head of the group's stablecoin task force (TF), stated, "The competitiveness of digital assets is not achieved through technology alone," adding, "Together with Circle, we will proactively prepare a Korean-style digital asset ecosystem and set new standards for future financial infrastructure."

                                                                                                          Lee Seo-yeon