Overview
- Circle signed separate memorandums of understanding with Kakao Group and Toss to study stablecoin payments, blockchain settlement, wallets and bank links, with the agreements formalized on July 23.
- Kakao will assess uses for won-pegged tokens, merchant settlement and remittances across KakaoTalk, Kakao Pay and KakaoBank while testing connections to Circle’s blockchain infrastructure.
- Toss and Toss Bank will study USDC-based wallets, programmable payments, biometric authentication and overseas transfers alongside work to connect stablecoins to traditional bank accounts.
- Circle says it does not plan to issue a won-denominated stablecoin and is positioning USDC as a dollar-pegged bridge for cross-border and tokenized services, but any product rollout depends on final product design and regulatory approvals.
- Circle executives warn that Korea’s unresolved stablecoin rules are keeping banks and fintechs at pilot stage and could slow consumer rollout, which means consumers may not see services until compliance, AML controls and official guidance are in place.