Kakao Group, Kakao Pay, and Kakao Bank signed a memorandum of understanding with Circle Internet Group on July 23 to explore payment infrastructure connecting Circle’s blockchain platform with Kakao’s consumer and financial service platforms for won-backed stablecoins.
The partnership targets payments, remittances, merchant settlement, and tokenized financial services, according to the announcement. The timing aligns with South Korea’s push to finalize regulatory frameworks governing stablecoin issuance and operation.
Regulatory Backdrop
South Korea’s government designated the Digital Asset Basic Act as a priority for the second half of 2026, signaling accelerated legislative work. The bill under preparation establishes requirements covering stablecoin issuance, collateral management, and internal controls.
Disagreement between regulators has slowed progress. The Bank of Korea argued that banks should retain a majority stake in stablecoin issuers. The Financial Services Commission countered that eligibility limits could restrict competition and innovation.
KB Financial Group completed a pilot in May 2026 covering stablecoin issuance, offline merchant payments, and cross-border remittances. Kbank partnered with Ripple in April 2026 to test blockchain-based remittances. KB Financial Group said it was preparing to introduce stablecoin services once regulations take effect.
Kakao’s Position
Kakao operates consumer and financial service platforms across South Korea. Kakao Pay and Kakao Bank, both Kakao subsidiaries, are central to the group’s financial services strategy. The MOU with Circle positions the group to participate in won stablecoin infrastructure as the regulatory environment clarifies.
Circle Internet Group is a stablecoin issuer. The partnership does not specify technical integration details, product timelines, or geographic scope beyond South Korea. Cointelegraph reached out to Circle and Kakao but received no response before publication.
