Kakao Group is deepening ties with Grab, SCBX and other regional players to extend its won-denominated stablecoin business into Southeast Asia. Grab, which already accepts KakaoPay, is among the partners where the won stablecoin could be used in payment and settlement processes.
Kakao Group said on the 23rd that it is in talks with Grab, the Southeast Asian super app, on issuing and circulating a won-denominated stablecoin, developing related services and mapping out a regional expansion strategy. The group is also reviewing digital asset business models linking South Korea and Thailand with SCBX, a Thai financial group, including cross-border payment and remittance services.
Industry watchers are focused on the Grab tie-up. KakaoPay can currently be used as an overseas e-wallet payment option on Grab, and Grab has recently been building out payment, clearing and settlement infrastructure using stablecoins across Asia.
"It appears Grab wants to see whether the stablecoin settlement structure it is pursuing in Singapore can be applied in Korea," said Yoon Seung-sik, head of Tiger Research. "Users would pay with KakaoPay as they do now, while a won-denominated stablecoin handles the back-end settlement."
Kakao Group is also widening its network in financial services and technology infrastructure. It is running proof-of-concept work on digital asset financial services with Kyobo Life Insurance and is working with Circle, the issuer of USDC, and Fireblocks, a digital asset infrastructure firm. It is developing anti-money laundering technology with Bonanza Factory.
"For stablecoins to take root in everyday life, we need joint efforts that cross national and industry boundaries," said Yun Ho-young, chief executive of KakaoBank and co-head of Kakao Group's stablecoin task force. "We will bring together domestic and overseas partnerships to create innovative services."
