Kakao Pay completes digital asset wallet PoC

Builds distribution base using payment, banking infrastructure

Plans tailored consulting for major domestic firms, financial institutions

[Courtesy of Kakao Pay]
[Courtesy of Kakao Pay]

Kakao Pay has completed a technology verification for an integrated digital asset wallet capable of storing and trading on-chain assets, including stablecoins. Kakao Bank is also conducting its own verification under banking-level security and regulatory requirements. Beyond applying the technology to its own services, Kakao Group plans to pursue wallet-building and consulting projects for outside companies and financial institutions.

Kakao Pay said Wednesday that it had completed a proof of concept for building a digital asset wallet.

The verification focused on expanding the company's existing wallet system, which has held prepaid balances such as Kakao Pay Money, into an integrated digital asset wallet capable of also holding on-chain assets like stablecoins.

Kakao Pay had earlier stressed that its extensive online and offline payment network could give it an edge in the stablecoin distribution market going forward.

The company expects its roughly 43 million users and broad payment network to help it secure competitiveness in the future stablecoin distribution market. It said it has built the technology and user interface needed for digital asset transfers, payments and settlement within its existing service environment, completing preparations to expand stablecoin distribution infrastructure.

Kakao Bank is separately conducting its own verification of the wallet technology, checking wallet integration, stability and usability under bank-level security and regulatory requirements. Kakao Group plans to verify the wallet technology across both Kakao Pay's payment infrastructure and Kakao Bank's banking infrastructure, laying the groundwork to realize the group's potential distribution use cases.

Beyond applying the technology to its own services, Kakao Group is also pursuing a wallet solutions business for outside companies and financial institutions. It plans to provide technology that allows companies to build digital asset wallets tailored to their own systems and regulatory requirements, along with customized consulting that shares the know-how needed during implementation.

Kakao Group is currently in talks with major domestic companies and financial institutions that are considering adopting digital assets, including won-denominated stablecoins.

"The true value of digital assets such as stablecoins will not be found in their issuance alone, but will be revealed at the distribution stage where the assets are actually used," said Shin Won-keun, chief executive of Kakao Pay and co-head of the group's stablecoin TF. "We will continue to build leadership in infrastructure technology such as wallets and in regulatory know-how, and work with a range of partners to help establish and energize the domestic digital asset ecosystem."


kyoung@heraldcorp.com