The 'Digital Asset Basic Law' proposed by Democratic Party lawmaker Min Byung-deok, who belongs to the National Assembly's Political Affairs Committee and serves as the party's Digital Asset Committee chair, does not impose industry restrictions on stablecoin issuers. According to the bill, market entry would be possible not only for financial institutions but also for large IT companies and fintech businesses. Any domestic corporation with over 500 million won in equity can obtain approval from the Financial Services Commission to issue a won-based stablecoin. The 'Digital Asset Innovation Law' being prepared for submission next month by other Political Affairs Committee members, including Kang Jun-hyun, plans to raise the equity requirement to 1 billion won but still allows issuance by non-bank entities.
As a result, the market has long predicted that Kakao might jump into issuing a won-based stablecoin. Particularly, Kakao Pay, a financial affiliate of Kakao, is considered to have the most advantageous conditions for stablecoin issuance, with over 20 million monthly active users through the 'national messenger' KakaoTalk. For stablecoins, distribution after issuance is crucial, which requires a solid user base. Kakao Pay's possession of over 1.13 million payment affiliates as of the end of last year is also seen as a strength in securing practical usage. This suggests that a 'Kakao won coin' would have abundant customers and usage points.
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Similar cases already exist overseas. PayPal, the world's largest online payment service company, issued a dollar-pegged stablecoin 'PayPal USD (PYUSD)' in 2023 and supports it as its payment method. By promising a 3.7% annual interest to PYUSD holders, it is further increasing its stablecoin market share. PYUSD's current issuance volume is approximately 947.23 million dollars (1.2946 trillion won), ranking 7th among all stablecoins.
With expectations of won-based stablecoin issuance being pre-reflected, Kakao Pay's stock price has been soaring daily. On the 20th, Kakao Pay closed trading at 79,600 won, up 29.85% from the previous trading day. Kakao Pay had previously surged 29.9% on the 9th, hitting the upper limit.
The financial and IT sectors are seeing a rapid increase in entities jumping into won-based stablecoin issuance. The Open Blockchain and DID Association established a 'Stablecoin Subcommittee' in April, involving KB Kookmin, Shinhan, Woori, NH Nonghyup, IBK, Sh Savings Bank, and the Financial Settlement Institute. This is for issuing won-based stablecoins centered on banks. Recently, internet banks K Bank and iM Bank have also decided to participate.
Moreover, domestic game company Nexus has officially declared the issuance of the first won-based stablecoin. In an interview with Seoul Economic Newspaper, Nexus CEO Jang Hyun-guk stated, "Our goal is to be the first to issue a won-based stablecoin in Korea." He plans to launch the won-based stablecoin 'KRWx' immediately upon the implementation of the Digital Asset Basic Law to secure market leadership.
The CEO emphasized, "While dollar-based stablecoins are already dominated by Tether (USDT) and USD Coin (USDC), the won-based market is still at the starting line with no clear leader. While it's uncertain which companies will participate, we're ready to boldly and proactively challenge the market."
Experts believe that while interest in won-based stablecoin issuance is growing among companies, actual issuance may take another 1-2 years. Considering this, there are suggestions that political circles and financial authorities should expedite the legislation of won-based stablecoins. Kim Gyu-jin, CEO of Tiger Research, predicted that "the earliest time businesses can proceed with stablecoin projects would be the first half of next year."
- Reporter Kim Jung-woo
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