Kakao Accelerates Stablecoin Plans as Naver Moves to Merge With Upbit Operator
Kakao Bank has reportedly shifted to energetic stablecoin improvement underneath founder Kim Beom-soo, whereas Naver is finalizing a merger with Dunamu, the operator of Upbit, South Korea’s largest crypto change.
These strikes come as lawmakers push ahead stablecoin payments that might reshape the nation’s digital monetary panorama.
Kakao Accelerates Stablecoin Development
According to a local media report, Kakao Bank is constructing blockchain infrastructure for its deliberate stablecoin, “Kakao Coin,” following an inside evaluation. With its giant consumer base throughout messaging, banking, and funds, Kakao goals to use its community to drive stablecoin adoption. Kim Beom-su, the founding father of Kakao, is reported to lead the mission. He was acquitted of market manipulation prices in his first trial in October.
The transfer happens throughout a world improve in stablecoin utilization. TRM Labs experiences that stablecoins accounted for 30% of all on-chain crypto transactions in 2025, with record volumes in August 2025. While monetary establishments increase digital asset integration, Kakao positions itself as a key issuer regardless of regulatory uncertainty.
South Korea’s National Assembly has but to enact complete stablecoin regulation. This uncertainty forces companies such as Kakao to advance their initiatives amid competitors and unclear rules.
Naver-Dunamu Merger Reshapes Competition
On Wednesday, Naver Financial and Dunamu are to maintain their respective board conferences to approve an fairness swap that can make Dunamu a completely owned Naver subsidiary. The 20 trillion won merger unites Naver’s fee infrastructure (80 trillion received in annual funds) with Upbit, South Korea’s main crypto change. Dunamu founder Song Chi-hyung receives a 30% stake, decreasing Naver’s share to 17%.
The merger is probably going to allow instantaneous stablecoin distribution on Naver’s platforms and leverage Dunamu’s regulatory expertise. It might also lead to a US itemizing, as BeInCrypto reported. Once laws is obvious, the partnership may assist Naver-Dunamu grow to be a prime issuer of won-backed stablecoins.
Analysts say the merger, combining experience in synthetic intelligence, knowledge, funds, and digital belongings, may set the usual for stablecoin rollouts in South Korea. The transfer is extensively seen as transformative for the nation’s fintech sector.
Legislative Race Shapes Regulatory Future
Regulation stays the important thing hurdle. Majority Floor Leader Kim Byung-kee, a Democratic Party lawmaker, launched the “Value-Stable Virtual Asset Issuance and User Protection Act.” The bill mandates 100% cash or sovereign bond reserves, a 3% contingency fund, and issuance on public blockchains such as Ethereum or Solana.
Other options embody a ten-day redemption window and strict limits on curiosity or financial positive factors. International issuers like Tether or Circle should register and procure a license to conduct enterprise in South Korea.
The Financial Services Commission handles licensing, whereas the Bank of Korea displays dangers. These businesses proceed to debate jurisdiction, as interagency points stay, particularly these associated to financial coverage.
Regarding crypto asset laws within the nation, greater than a dozen payments are underneath evaluation by the Assembly. However, unresolved disputes between regulators may lead to additional delays.
Ultimately, regulatory readability will determine if Kakao and Naver-Dunamu carry stablecoins to Korean finance, or if these initiatives stay in testing as international adoption advances elsewhere.
The submit Kakao Accelerates Stablecoin Plans as Naver Moves to Merge With Upbit Operator appeared first on BeInCrypto.
