Latest news with #KakaoBank
Yahoo
4 days ago
- Business
- Yahoo
Asia Morning Briefing: Korea's 'Onshore' Won Policy Could Hinder Its Stablecoin Ambition
Good Morning, Asia. Here's what's making news in the markets: Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Korea's decision to shelve its central bank digital currency pilot in favor of private-sector stablecoins has sparked a wave of activities among fintechs and banks. As CoinDesk previously reported, KakaoBank is weighing both issuance and custody roles, while Upbit and Naver Pay are collaborating on a payments-focused token that could help close the 'kimchi premium' gap between local and global crypto prices. The opportunity comes as Korea is moving to extend FX trading hours, allow more foreign participation in its onshore market, and position itself for inclusion in major global bond and equity indices. A regulated KRW stablecoin could fit into these modernization plans, offering faster settlement and tighter integration between banking and digital asset markets. But any Won stablecoin effort is going to run into a massive wall: Korea's currency is not fully internationalized. Since the Asian Financial Crisis of 1997, Korea has kept deliverable KRW trading entirely onshore. Foreign institutions cannot exchange won among themselves abroad, and every dollar–won transaction must be settled through domestic intermediaries under the Bank of Korea's supervision. Authorities in Seoul maintain this system to monitor speculative flows, contain volatility, and preserve monetary policy autonomy. So for a Won stablecoin to work, it would have to be only used with whitelisted, KYC-verified addresses that have some tie to Korea. If a privately issued stablecoin becomes too dominant, it can erode a country's control over its currency, encourage 'unintended dollarisation,' and weaken the central bank's ability to manage employment and price stability, Vera Yuen, a professor at Hong Kong University's business school told CoinDesk in a note. The question is, just how useful would this on-shore only stablecoin then be? Domestic interbank transfers in Korea settle around the clock, 365 days a year. Sending money from one account to another is immediate, free, and widely used, leaving little payment friction for a KRW stablecoin to solve inside the country. Without a speed or cost advantage in domestic transfers, the token's primary utility would lie in cross-border settlement — and that is precisely where the onshore-only rule becomes a brick wall. Taiwan faces a similar dilemma. The island's central bank does not impose capital controls on the economy—the Taiwan dollar (NTD) is freely convertible—but it also can't be used offshore, making it of questionable utility as a stablecoin. An NTD-pegged token would be bound by Taiwan's stablecoin framework issued in June, which requires local bank issuance, 100% onshore reserves, and central bank oversight with foreign exchange reporting, which are designed to stop it from becoming an unregulated channel for moving NTD value abroad. One day, a Won, and NTD, stablecoin may emerge, but its utility will likely be confined largely to domestic use rather than the global crypto market, so it'll play a very niche role. It'd be a different story for a Hong Kong Dollar stablecoin as the currency, which is pegged to the U.S. dollar, has no restrictions on being used abroad. Right now, it's wait a wait-and-see mode to determine how much demand there is for non-USD stablecoins and what role they will play in the broader crypto economy. Market Movers BTC: BTC is trading at 123,901.58, supported by broader market momentum as the S&P 500 and Nasdaq hover near record highs on softer inflation signals and speculation of Fed easing. ETH: ETH is getting ready to challenge its all-time high, trading above $4700. Gold: Gold rose 0.3% to $3,356.98 as mild U.S. inflation data boosted expectations for a Fed rate cut next month and increased the odds of further easing this year. Nikkei 225: Asia-Pacific markets opened mixed Thursday, with Japan's Nikkei 225 down 0.31% after hitting a record high in the prior session. S&P 500: U.S. stocks climbed Wednesday, with the S&P 500 and Nasdaq hitting new records as steady inflation data fueled expectations for two Fed rate cuts this year. Elsewhere in Crypto: Google's app store is banning unregistered non-custodial crypto wallets (The Block) Ethereum Wallet MetaMask Will Likely Unveil Its Own Stablecoin this Week (CoinDesk) How Binance's Yi He became 'the most powerful woman in crypto'—and steered the company past its biggest ordeal (Fortune)
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Korea Herald
29-07-2025
- Business
- Korea Herald
[Photo News] Kakao Bank-UNICEF $2m climate fund
Kakao Bank CEO Yun Ho-young (center) poses with Sawako Kanetaka (left), Asia-Pacific hub lead at UNICEF, and Cho Mi-jin (right), secretary-general of UNICEF's Korean Committee, during a signing ceremony in Seoul on Monday for a new global partnership focused on addressing climate risks for future generations. Under the agreement, the three parties will jointly contribute $2 million over the next two years to support children and teenagers through climate-related projects across Asian countries, including Indonesia, Thailand and Cambodia. Separately, Kakao Bank will contribute an additional $1 million annually to operate a global social contribution fund. (Kakao Bank)
Korea Herald
26-06-2025
- Business
- Korea Herald
Crypto fever grips Korea as banks bet on stablecoins
Stablecoin scramble stirs market volatility, draws regulatory warnings More Korean banks are racing to take a preemptive lead in stablecoins, with the push spilling into equity markets and triggering heightened regulatory warnings amid growing volatility. The frenzy reflects a broader shift as financial and tech players vie for dominance in the future of digital payments. KB Kookmin Bank, Hana Bank and internet-only Kakao Bank each filed trademark applications this week related to stablecoins, according to the Korean Intellectual Property Office. KB Kookmin led the move, applying for 32 trademarks including 'KBKRW' and 'KRWKB," classified under cryptocurrency-based transfers and financial services. Hana Bank followed with 16 applications, such as 'HanaKRW' and 'KRWHana.' Kakao Bank, the first internet-only lender to join the stablecoin race, filed for 12 cryptocurrency-related trademarks. Banks are accelerating Korea's stablecoin race, which kicked off last week when Kakao Pay, the payments arm of tech giant Kakao, filed for 18 trademark rights. In the non-financial sector, game developer Nexus has also entered the fray, registering a won-based stablecoin, 'KRWx,' on the Binance blockchain (BNB Chain) and filing for a corresponding trademark in Korea. Momentum behind won-pegged stablecoins has been building in recent weeks, with the new administration signaling support for institutionalization. The ruling Democratic Party of Korea is backing legislation that would allow not only banks but also non-bank institutions to issue won-based stablecoins, provided they meet capital requirements such as at least 500 million won ($368,000) in equity or 1 billion won in total assets. The frenzy has jolted equity markets, sending crypto-related stocks soaring. Kakao Pay, seen as a front-runner in the stablecoin push, has surged 148 percent in June alone. The Korea Exchange halted trading in the stock on Tuesday after labeling it an 'investment risk' due to excessive volatility. Despite regulatory warnings, shares rose nearly 2 percent on Wednesday — well above the Kospi's 0.15 percent gain — briefly topping 100,000 won, prompting a second trading suspension on Thursday. Amid the crypto surge, regulators are urging caution. In a report Wednesday, the Bank of Korea warned that hasty adoption of stablecoins could trigger systemic instability. 'Stablecoins operating on blockchain networks carry payment and operational risks due to insufficient regulatory frameworks and infrastructure, including the potential for technical failures and criminal misuse,' the BOK said in the report, adding that key concerns include coin runs, capital flow volatility and reduced effectiveness of monetary policy. The central bank's warning cooled investor sentiment, sending stablecoin-linked stocks tumbling. Kakao Bank, which touched a three-year high of 38,000 won on Tuesday, traded around 31,600 won by Friday afternoon, down 13 percent on the day. LG CNS and Shinsegae I&C, both of which had surged 94 percent and 80 percent, respectively, in June on stablecoin anticipations, also tumbled, sliding nearly 20 percent over Wednesday and Thursday.
Korea Herald
25-06-2025
- Business
- Korea Herald
Kakao Bank steps into stablecoin race with new trademark filings
South Korea's internet-only bank Kakao Bank has filed trademark applications in a preemptive move to establish a foothold in the stablecoin market, as the country accelerates efforts to institutionalize digital assets. Kakao Bank, an affiliate of internet giant Kakao, recently submitted trademark applications for BKRW, KRWB, KKBKRW and KRWKKB to the Korean Intellectual Property Office. These names combine KRW, the currency code for the Korean won, with KKB, an abbreviation of the bank's name. The four trademarks fall under three categories related to cryptocurrency-based electronic transfers and financial transactions, bringing Kakao Bank's total number of pending cryptocurrency-related trademark rights to 12. 'The trademark applications were filed as a preemptive move to respond to developments in the stablecoin market,' a Kakao Bank official stated, adding that the company is 'closely monitoring related legislation and market conditions.' Earlier this month, Kakao Pay, an online payment service provider under Kakao, also filed for trademarks, combining KRW with its abbreviation, KP. Recently, Korea has been accelerating the push to issue a Korean won-pegged stablecoin. Major financial and fintech companies -- including Kakao Bank and Kakao Pay -- are expected to play a pivotal role in the market. Backed by the anticipation, shares of Kakao Bank surged to as high as 38,750 won ($28.45) on Tuesday, up nearly 20,000 won from 19,800 won on April 9. Kakao Pay shares soared to 114,000 won on Tuesday, marking a more than fourfold increase from 26,350 won on April 9.
Korea Herald
19-06-2025
- Business
- Korea Herald
Kakao Bank secures 'virtual bank' license in Thailand
South Korea's internet-only lender Kakao Bank said Thursday it has received approval from the Thai government to operate a "virtual bank," marking the first reentry of a Korean bank into the Thai market in 25 years. The Thai Ministry of Finance recently selected a consortium formed by Kakao Bank and Thailand's leading financial group SCBX as one of three operators of the country's upcoming virtual banking system. "This license is a crucial step in exploring new markets and a valuable opportunity to showcase the excellence of Korea's digital finance technology," Kakao Bank Chief Executive Officer (CEO) Yoon Ho-young said. Through the virtual bank project, Kakao Bank aims to serve as a bridgehead for Korean banks and companies looking to enter the Thai market, he said. The Kakao Bank consortium received high marks for its expertise in building digital banking infrastructure, advanced technological capabilities, and localization strategies. Thailand's virtual banking initiative is designed to offer financial services entirely through digital platforms without physical branches -- similar to South Korea's internet-only banks. Full-scale operations are expected to begin in the second half of 2026, following a one-year preparation period.
