Kakao Group Teams Up With Fireblocks to Build Digital-Asset Infrastructure Centered on Stablecoins
Summary
- Kakao Pay and KakaoBank said they signed a memorandum of understanding with Fireblocks to build digital-asset infrastructure in South Korea.
- The three companies said they will jointly identify infrastructure demand and business opportunities in the domestic digital-asset market centered on stablecoins and pursue a proof-of-concept (PoC).
- Kakao Group said the agreement will lead to a more detailed review of infrastructure and service models related to won-denominated stablecoins, whose possible formal adoption is under discussion.
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Kakao Pay and KakaoBank said on September 22 that they signed a memorandum of understanding with Fireblocks to build digital-asset infrastructure in South Korea.
The three companies plan to jointly identify infrastructure demand and business opportunities in South Korea’s digital-asset market, with a focus on stablecoins. They will also review digital-asset distribution solutions suited to domestic regulations, security systems and service conditions, and pursue a proof-of-concept to assess the technology’s potential applications.
Fireblocks provides infrastructure for payments, settlement, custody, tokenization, trading, accounting and regulatory compliance to financial institutions and virtual-asset service providers. According to the company, more than 2,500 institutions, including more than 100 banks globally, use its services, and the cumulative value of digital-asset transactions secured through its platform has exceeded $16 trillion.
Kakao Group said it aims to create a Korean-style digital-asset ecosystem by combining Kakao Pay’s payments and fintech capabilities, KakaoBank’s financial expertise and the group’s blockchain technology. Through the agreement, it is expected to more closely examine infrastructure and service models tied to won-denominated stablecoins, whose possible formal adoption is under discussion.
Michael Shaulov, Fireblocks’ co-founder and chief executive officer, said banks and payment platforms need infrastructure that meets institutional-grade security and operational requirements from the early stages if they are to expand digital-asset services. He added that Kakao Pay and KakaoBank are building that foundation.
Yoon Ho-young, chief executive officer of KakaoBank and co-head of Kakao Group’s stablecoin task force, said the three companies will study safe and convenient digital-asset services based on their technologies and capabilities. He also said they will explore new possibilities to expand customers’ financial lives.
Shin Won-keun, chief executive officer of Kakao Pay and the other co-head of the task force, said the domestic digital-asset market needs infrastructure that allows assets to circulate smoothly in order to grow. He added that the partnership with Fireblocks will help lay the groundwork for the broader ecosystem.
