Circle signs MOUs with Kakao and Toss Bank on Korean stablecoin payments
DeFi & Yields ·
Circle has entered into separate memorandums of understanding with Kakao Group and Toss Bank to explore stablecoin-based payment infrastructure in South Korea.
The agreements, confirmed in Circle's announcement, set out a joint effort to examine how stablecoins could be woven into the country's digital payment landscape, according to The Block. The Kakao Group tie-up centers on a memorandum of understanding to develop a won-denominated stablecoin intended for use in payments, remittances, and merchant settlement, a scope confirmed by Kakao Pay's own release. A parallel arrangement with Toss and Toss Bank is aimed at integrating stablecoin payments into Toss's fintech infrastructure.
Under the terms described, the work with Kakao is framed as an exploration of blockchain-based payments alongside potential adoption of USDC, Circle's existing stablecoin, rather than a commitment to a finished product. The won-denominated stablecoin effort adds a domestically pegged instrument to that conversation, distinct from a dollar-pegged token, with its stated use cases spanning consumer payments, cross-border remittances, and settlement between merchants. Additional detail on the Toss side, including timelines or specific rails to be used, was not included in the material available.
The moves are being tracked as part of a broader push into Korean fintech, with Leviathan News noting the activity as part of ongoing coverage of Circle's expansion. Four distinct sources have reported on the cluster of announcements, pointing to Kakao Group, Kakao Pay, Toss, and Toss Bank all being named as counterparties in some combination across the reporting, though the exact division of responsibilities between the Kakao and Toss tracks is not fully spelled out in the material provided.
What remains unresolved is the operational path from memorandum to launch: no rollout date, transaction volume target, or regulatory approval process in South Korea was specified in the announcements. It is also not established whether the won-denominated stablecoin under the Kakao MOU would be issued by Circle, Kakao, or a separate entity, nor how it would relate to Circle's existing USDC offering. Further disclosures from Circle, Kakao, or Toss Bank on structure, regulatory engagement, and timing are the next markers to watch.