Kakao signs Fireblocks deal to test stablecoin infrastructure

Kakao Pay and KakaoBank have signed a memorandum of understanding with blockchain infrastructure provider Fireblocks to explore stablecoin infrastructure and other digital asset services in South Korea, the companies announced on Sept. 21. Under the agreement, the three companies will run proof-of-concept tests covering digital asset distribution frameworks designed around South Korean regulatory, security and service requirements. The MoU does not announce a stablecoin, an investment amount, a commercial product or a deployment date. The parties plan to examine infrastructure demand and possible digital asset businesses before deciding whether any framework should advance beyond testing. Kakao Pay CEO Shin Wonkeun and KakaoBank CEO Yun Hoyoung, who cohead Kakao Group's Stablecoin Task Force, both signed the deal. Yun said the parties expect to combine their technology and expertise to develop secure and accessible digital asset services. Fireblocks CEO Michael Shaulov said infrastructure for Korean banks and payment platforms needs to be engineered to meet institutional requirements from day one.