Kakao Pay's stablecoin initiative in South Korea coincides with a broader market rally, fueled by regulatory clarity and growing optimism in the digital asset space.

Stablecoin Surge in South Korea: Kakao Pay's Venture and the Stock Rally

South Korea is making big moves in the crypto space! Kakao Pay's entry into stablecoins, coupled with positive regulatory developments, is sparking excitement and a stock rally.

Kakao Pay's Stablecoin Play

Kakao Pay, a major South Korean payment company, is diving into the stablecoin world. They've filed for 18 trademarks related to a “Korean Won Stablecoin” project, signaling serious intentions. This move comes as the global stablecoin market cap hits a record $251.7 billion, fueled by increased regulatory clarity, notably the U.S. Senate's GENIUS Act.

The trademark applications cover names and logos that blend the Korean won currency sign (₩) or the letters “KRW” with “Pay” or “Kakao,” indicating a clear focus on a won-pegged stablecoin. This stablecoin will live on Kaia, the Layer-1 blockchain arm of Kakao’s Ground X subsidiary. Imagine 20 million monthly active Kakao Pay users seamlessly using "₩-Coins" – it's a game-changer!

Stock Market's Positive Reaction

The market is loving Kakao Pay's stablecoin venture. Kakao’s stock jumped 9.42% on June 19, 2025, and has soared approximately 61.5% over the past month. Investors are clearly optimistic about Kakao's entry into digital-fiat tokens.

Circle's Massive Rally and Stablecoin Momentum

It's not just Kakao; the entire stablecoin sector is buzzing. Circle, the issuer of USDC stablecoins, has seen its stock skyrocket. Shares are up roughly 670% above their IPO price, fueled by the passage of the GENIUS Act and Wall Street's bullish outlook on crypto. Analysts predict the overall stablecoin market cap could reach $500 billion by the end of next year, and potentially $2 trillion long-term. The increased clarity around stablecoin regulation definitely contributed to the surge in value for the CRCL stock.

Stablecoin Payments: Trends and Insights

Real-world stablecoin payments are on the rise, with some interesting trends emerging. A recent Artemis report highlights that B2B transactions make up a significant portion of these payments. While Tether's USDT dominates in volume, TRON is surprisingly leading in processing these payments, even for transactions originating in the U.S. and Europe. This suggests that the destination of a payment influences the choice of blockchain. For instance, if a payment from the U.S. or Europe is headed to a region that prefers TRON, TRON is used for the entire transaction. Ethereum remains popular in Africa.

Final Thoughts

The stablecoin landscape is heating up, especially in South Korea. Kakao Pay's venture, combined with broader regulatory tailwinds and stock market enthusiasm, paints a vibrant picture. It's an exciting time to watch how stablecoins evolve and reshape the financial landscape. Who knows, maybe we'll all be using "₩-Coins" to buy our morning coffee soon!