Circle And Kakao To Collaborate On Stablecoin Payments In South Korea

Circle and Kakao Group have signed a memorandum of understanding to study stablecoin payments, cross-border transfers and digital asset services in South Korea. The agreement, announced on July 23, covers Kakao, Kakao Pay and Kakao Bank.

Good To Know

• KakaoTalk reaches about 93% of the South Korean population.
• Circle and Kakao will assess USDC and won-backed stablecoins.
• No launch date or confirmed commercial product has been announced.

Circle Stablecoin Tools Could Reach Kakao Games

Gaming may become one of the clearest use cases under the Circle and Kakao partnership.

Kakao Games publishes titles linked to PUBG and Lion Heart Studio, while METABORA develops blockchain gaming services through the BORA platform. Stablecoin payment rails could give players an easier way to buy digital items, transfer funds and use GameFi services without relying on complex crypto payment steps.

METABORA already works with the NEAR Foundation on web3 games and cross-chain liquidity. Circle infrastructure could add another payment layer across that blockchain gaming network.

However, Circle and Kakao have only agreed to research possible products. Both companies will review regulation, security, compliance and risk controls before any public launch.

Kakao Pay CEO Shin Won-keun said the partnership could support the development of a Korean digital asset ecosystem alongside Circle. Kakao also plans to study KRW-backed tokens rather than focusing only on dollar-based USDC payments.

KakaoTalk gives the project a large built-in audience. The messaging app reaches roughly 93% of people in South Korea, giving any future Circle integration access to users across payments, banking, messaging and gaming.

Circle has also signed an MOU with Viva Republica, operator of Toss and Toss Bank. Toss plans to examine biometric payments and USDC-linked financial products, while Toss Bank will assess links between stablecoins and standard banking systems.

Circle Chief Strategy Officer Dante Disparte has argued that South Korea needs to combine digital asset technology with existing payment networks. Agreements with Kakao and Viva Republica place Circle close to two of the largest consumer finance platforms in the country.