The Global Stablecoin Battle Heats Up: Kakao Pay Leads the KRW Race — Is the Next Crypto Revolution Upon Us?
On June 23, South Korean fintech giant Kakao Pay filed 18 trademark applications with the Korean Intellectual Property Office for proposed KRW-pegged stablecoins, with names like “KRWKP” and “KWRP,” covering services ranging from virtual asset trading to digital payment mediation.
This marks a strategic, forward-looking response to Korea’s upcoming Digital Asset Basic Act, which aims to build a legal framework for stablecoin issuance. Gaming company Nexthurs also declared its ambition to become one of the first issuers of a KRW-backed stablecoin, igniting a domestic race for stablecoin dominance. Even the Bank of Korea, while not opposing stablecoin innovation, warned of potential risks to the country’s foreign exchange balance.
In short, a global corporate scramble to issue nation-backed stablecoins is erupting in Korea — and it may foreshadow the next phase of crypto evolution.
Why Are Stablecoins Becoming the Next Corporate Battlefield?
- Stablecoins: The Rise of Legal Digital Currency
Stablecoins are crypto assets pegged to fiat currencies like KRW or USD, combining price stability with on-chain liquidity. Their advantages include:
Payment intermediation: Useful for microtransactions, tipping, cross-border remittance.
DeFi backbone: Powering lending, trading, derivatives, GameFi ecosystems.
Volatility resistance: More institution- and retail-friendly compared to volatile tokens like BTC or ETH.
Globally, stablecoins like USDT and USDC have grown into a market worth hundreds of billions of dollars. The emergence of fiat-native stablecoins (e.g., KRW-, EUR-, JPY-based) is simply the next logical step in the digitization of global finance.
- A Global Trend: Governments and Corporates Join the Race
U.S.: Exploring legal frameworks for USD stablecoins via the GENIUS Act.
Europe: Players like Circle and Tether applying for Euro stablecoin issuance.
Hong Kong: Regulatory clarity accelerates RWA and stablecoin activity.
South Korea: New administration proposes a Digital Asset Basic Act allowing private companies to issue KRW stablecoins.
This signals a new chapter: from “centralized USD-pegged stablecoins” to “fiat-native + regulated + enterprise-issued” stablecoins.
And at the enterprise level, this goes beyond fintech:
Kakao Pay: With a massive user base, aims to integrate stablecoins into its digital ecosystem.
Nexthurs (gaming): Seeks to anchor in-game assets with KRW stablecoins for on-chain settlement.
More sectors to come: E-commerce, social media, and digital content platforms will likely follow.
Stablecoins are no longer just payment tools — they’re becoming infrastructure for building on-chain business ecosystems.
The Korea Model: Regulation + Compliance + Innovation
South Korea is a digital-savvy nation, with widespread adoption of mobile payments, fintech, and online gaming. This gives stablecoins fertile ground to scale in real-world usage. Korea’s approach blends policy foresight, regulatory clarity, and enterprise-led innovation, offering a unique model.
- Clear Legal Framework: Companies Have Rules to Follow
Unlike regions with regulatory ambiguity, South Korea’s legislation is maturing rapidly:
The Digital Asset User Protection Act outlines basic rules for stablecoins, exchanges, and custodians.
The Digital Asset Basic Act (draft) explicitly allows non-central bank entities to issue KRW-pegged stablecoins, provided they meet reserve, capital, and audit requirements.
Stablecoin issuers must partner with licensed banks for oversight.
This provides clarity and reduces legal risk for firms like Kakao Pay and Nexthurs. More importantly, the government isn’t monopolizing issuance — it’s empowering capable private entities to apply, compete, and innovate.Such “compliance-driven openness” supercharges market momentum.
- Compliance + Tech = Guardrails, Not Roadblocks
The Korean government emphasizes risk controls while enabling innovation. Key requirements include:
1:1 fiat reserves, held with banks and verified via third-party audits.
Segregated custody of user funds — no commingling or rehypothecation.
Security testing for wallets, gateways, and smart contracts — including black-box assessments.
These safeguards, though strict, grant Korean stablecoins a built-in credibility advantage, which could boost their use in cross-border payments and institutional finance.
Additionally, Korea’s Financial Services Commission (FSC) works in close coordination with the central bank, prosecution office, and tax authorities, ensuring smooth regulatory execution. For instance, while exchanges like Upbit and Bithumb faced penalties in the past, they were later granted legal licenses after aligning with compliance standards — proving the government’s stance is not anti-crypto, but pro-responsible innovation.
- Fast-Moving Enterprises + Strong Ecosystem Synergy
Kakao Pay isn’t “launching a coin to chase a trend” — it’s building a comprehensive payment + ecosystem blueprint.
The Kakao Group already operates:
KakaoTalk: Messaging app with over 100M users.
Kakao Pay: Integrated financial tools — payments, lending, insurance, wealth.
Kakao Games: Publisher of popular mobile and esports titles.
Kakao Bank: One of Korea’s leading internet banks.
Once a KRW stablecoin is issued, Kakao can create a closed-loop ecosystem that links messaging, payments, investments, and gaming, with built-in on-chain utility. Users wouldn’t need to leave the Kakao ecosystem to access DeFi, store digital assets, or conduct token-based transactions.
Similarly, Nexthurs sees the same opportunity. For game publishers, stablecoins aren’t just for in-game purchases — they can become anchors for virtual asset pricing, enabling P2P circulation and integration with DeFi or RWA platforms. The KRW stablecoin could evolve into a foundational currency for Korean GameFi.
In Korea, platform-driven, scenario-based stablecoin models are viable — because domestic firms are crypto-native by design.
What Will This Mean for the Global Crypto Landscape?
A New Channel for Regional Stablecoin Circulation
A KRW stablecoin would enable cross-border payment rails across East Asia, offering Korean, Chinese, and Japanese users a faster, cheaper, regional alternative to USD stablecoins.Accelerating Enterprise On-Chain Transformation
As more companies issue or integrate stablecoins, expect:
Payment platforms to add blockchain settlement layers;
Game studios to tokenize in-game currencies and assets;
E-commerce platforms to offer stablecoin-based rebates, loyalty, or marketing campaigns.
Multiple industries participating = a major timeline acceleration for “on-chain real-world use cases.”
- Competitive Dynamics Will Shift
The stablecoin landscape will enter a new phase:
Regulated players vs rogue projects: Compliance becomes a real moat.
Product differentiation: Brand trust, utility design, and reserve mechanisms will determine adoption.
Global attention: If Korea’s KRW stablecoin model succeeds, it may become the blueprint for other fiat-native stablecoins worldwide.
Final Thoughts
The global stablecoin race is evolving fast. From the U.S. to the EU, from Hong Kong to Korean tech giants, whoever secures legal issuance rights will hold the keys to the digital economy’s front door.
Kakao Pay’s early bet shows us: stablecoins aren’t just for payments — they’re the gateway to on-chain ecosystems. As more fiat-backed tokens bridge into the real economy, Web3 will shift from niche experiments to everyday infrastructure.
