South Korea’s Kakao, Circle team up on digital payments

1 of 2 | A man walks past the headquarters of a South Korean internet-only bank, Kakao Bank, in Seongnam, south of Seoul, South Korea. Photo by YONHAP / EPA July 23 (Asia Today) -- South Korea's Kakao Group has partnered with global stablecoin company Circle Internet Group to develop blockchain-based payment systems and infrastructure for won-denominated digital assets. Kakao said Thursday that Kakao Corp., Kakao Pay and KakaoBank signed a strategic memorandum of understanding with Circle to cooperate on digital asset technology and blockchain payment infrastructure. The companies plan to combine Kakao's platform and financial service ecosystem with Circle's global blockchain and payment infrastructure. They will jointly explore business opportunities involving payments, settlements and connections between digital assets and conventional financial systems while complying with South Korea's developing regulatory framework. The partnership will cover won-denominated digital assets and tokenized financial services. The companies will examine the use of Circle's infrastructure for international payments, cross-border remittances and merchant settlements. They will also explore ways to improve interoperability between blockchain networks and existing financial systems. Kakao said the partnership could support the development of a won-backed stablecoin and establish infrastructure allowing a wider range of South Korean companies to participate in the digital asset market. A stablecoin is a type of digital asset designed to maintain a fixed value by linking it to a conventional currency or another reserve asset. Kakao has been preparing for broader use of digital assets by connecting financial services provided by Kakao Pay and KakaoBank with KakaoTalk, the group's widely used messaging platform. The company said the agreement will expand its cooperation with global digital asset infrastructure providers and accelerate efforts to develop a digital asset ecosystem tailored to the South Korean market. "The competitiveness of digital assets cannot be achieved through technology alone," said Shin Won-keun, chief executive officer of Kakao Pay and co-head of the group's stablecoin task force. "We will work with Circle to prepare a Korean digital asset ecosystem in advance and establish a new standard for the financial infrastructure of the future," Shin said. -- Reported by Asia Today; translated by UPI © Asia Today. Unauthorized reproduction or redistribution prohibited. Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260723010008305 Read More Circle targets South Korea to challenge Tether dominance Reports: Internet giant Naver may merge with crypto firm Dunamu Trump's sons to visit Seoul for crypto meetings, token promotion