Circle and Kakao Group sign MOU for won stablecoin, targeting 40M users

Circle Internet Group signed a non-binding MOU with South Korea's Kakao Group on July 22 to explore a Korean won stablecoin and blockchain-based payments infrastructure.

"Korea is one of the world's leading digital markets and has a solid foundation for financial innovation," Kash Razzaghi, chief commercial officer at Circle, said in a statement.

The partnership brings together Circle's USDC infrastructure with Kakao Group's digital ecosystem, which includes KakaoTalk's messaging platform, Kakao Pay's payment services with more than 40 million users, and KakaoBank's financial capabilities. The companies plan to develop business models combining Kakao's platform reach with Circle's blockchain and global payments network for won-based digital assets and tokenized financial services.

The MOU is an exploratory agreement rather than a binding commercial contract, and the companies did not disclose a detailed issuance structure or service launch timeline. The project's direction will depend on South Korea's pending Digital Asset Basic Act and rules governing who may issue won stablecoins, according to the statement.

The two sides are reviewing ways to use Circle's payments infrastructure to improve global payments, cross-border remittances and merchant settlement, according to the July 23 announcement. They also plan technical cooperation to strengthen interoperability between blockchain networks and existing financial systems.

Kakao Group has formed a joint stablecoin task force co-led by Shin Won-keun, chief executive officer of Kakao Pay, to coordinate the initiative. The group is also considering shared infrastructure that would allow other domestic companies to develop related services beyond the won stablecoin project.

"Competitiveness in digital assets cannot be built on technology alone," Shin said. "Based on the platform, payments and financial service experience built into daily life, Kakao Group will work with Circle to prepare early for a Korean-style digital-asset ecosystem."

South Korea is one of the most active crypto markets globally by trading volume, and a won-backed stablecoin could significantly expand stablecoin use cases in retail payments and cross-border transactions. Circle's USDC, the second-largest stablecoin by market cap with a circulating supply of roughly $34 billion, currently operates primarily on Ethereum, Solana and other major blockchains.

The partnership marks Circle's latest push into Asia after the company expanded its presence in Singapore and Japan. For Kakao Group, the move represents an effort to extend its financial services footprint into digital assets ahead of clearer domestic regulation.

This article is for informational purposes only and does not constitute investment advice.