Kakao Pay, KakaoBank test stablecoin distribution with Fireblocks

Kakao Pay and KakaoBank on Sept. 21, 2026 signed a memorandum of understanding with U.S. custody and settlement provider Fireblocks to develop stablecoin distribution frameworks and run proof-of-concept tests in South Korea. The work will examine how a won-denominated or other stablecoin could move through wallets, payment systems and bank accounts under Korean rules.

Under the MoU, the three firms will first design distribution frameworks that meet domestic regulation and security standards and then test those designs in pilot programmes. The announcement did not include a product launch date, investment amount, implementation timeline, blockchain choice, token standard, reserve structure or custody model.

The project focuses on distribution rather than issuance. South Korean law does not permit production issuance of won-denominated stablecoins, so the agreement covers the operational layer: how to deliver a stablecoin to users and merchants and how it would interact with existing payment and banking systems.

Kakao Pay will contribute mobile payment and merchant acceptance capabilities, while KakaoBank will provide the banking operations a regulated stablecoin would require. Fireblocks will provide institutional custody and settlement infrastructure; it reported that more than 2,500 institutions use its platform, including over 100 banks, and that it supports custody, settlement and tokenization across more than 200 blockchains. For regulators, Fireblocks’ role addresses technical controls such as key management, transaction signing and wallet safeguards.

The agreement follows a July 2026 memorandum between Kakao Group and a stablecoin issuer that covered blockchain payments and won-denominated stablecoin opportunities. Together, the two MoUs cover different parts of potential stablecoin infrastructure: issuance expertise on one side and custody and operational plumbing on the other.

Exchanges in South Korea have begun listing dollar- and yen-pegged stablecoins against the won. Other local pilots include a won-denominated stablecoin trial by KB Financial Group in May 2026 covering issuance, offline merchant payments and cross-border remittances, and a proof of concept by Toss with Optimism and Sunnyside Labs.

Researchers at the Bank of Korea have linked demand for dollar-pegged tokens to periods of won weakness. Several industry memoranda remain early-stage while South Korea finalises its legal framework for won-denominated stablecoins.

The MoU leaves open whether tests will use real funds or simulated tokens, and it does not include timelines or the technical details needed before any consumer rollout. Kakao Pay chief executive Shin Won-keun and KakaoBank chief executive Yun Ho-young are listed as co-heads of Kakao Group’s Stablecoin Task Force overseeing the effort.