Circle’s (@circle) X feed turned into a run of handshake emojis on July 23. One post announced a memorandum of understanding (MOU) with Kakao Group, signed alongside Kakao Pay and KakaoBank. Another confirmed a second agreement with Toss (@toss__official) and Toss Bank, sealed at a stablecoin roundtable at Toss headquarters a day earlier. Two deals, two of South Korea’s biggest consumer fintech names, and one question hanging over both: is the $USDC issuer about to launch a Korean won stablecoin? It is not. Circle has ruled that out repeatedly and on the record. What the agreements sketch instead is a different role, with Circle as the plumbing under whatever won-pegged token Korea’s banks and fintechs eventually bring to market.
What Did Kakao and Circle Actually Sign?
The Kakao agreement pairs Kakao, Kakao Pay, and KakaoBank with Circle Internet Group. Under the MOU, the companies will explore connecting Circle’s blockchain and global payment infrastructure with Kakao’s consumer platforms and financial services. Circle said the work will assess opportunities for “$USDC and Circle’s global payment rails” across payments, settlement, and digital asset connectivity.
The areas under review include:
- Stablecoin payments and infrastructure for potential won-backed digital assets
- Cross-border remittances and overseas payments
- Merchant settlement
- Links between existing banking systems and blockchain networks
- Tokenized financial services
None of this is a product. There is no confirmed issuance model, no commercial launch, and no timeline. Both sides describe the work as a feasibility study that runs through technical and regulatory review before anything ships. Kakao Pay CEO Shin Won-keun, who heads the group’s stablecoin task force, framed the goal in the group’s announcement as a way to “preemptively prepare a Korean digital asset ecosystem” alongside Circle.
The Toss agreement runs on a parallel track: $USDC-based services, digital wallets, programmable payments, and cross-border settlement. Between KakaoTalk’s messaging reach and the Toss super app, Circle now has a line into both of the country’s dominant consumer fintech ecosystems.
Why Won’t Circle Issue a Won Stablecoin Itself?
Because it keeps saying so. Speaking to reporters in Seoul in April, CEO Jeremy Allaire said “I don’t believe Circle would issue a Korean won stablecoin,” pointing instead to a consortium of Korean banks, fintechs, and digital asset firms as the likely issuer. Circle’s pitch is the layer underneath: the technology that makes stablecoins run, plus a bridge between any future KRW token and the global liquidity of $USDC, a pool of roughly $73 billion in circulation as of this week.
The Korea playbook has looked the same all year. Circle struck agreements earlier in 2026 with Dunamu, the operator of Upbit, and with Bithumb, exchanges that regularly handle more than 95% of the country’s daily crypto trading volume. Partner with the platforms that already own Korean users and money flows, and make $USDC the connective tissue.
Where Do Korea’s Stablecoin Rules Stand?
Domestic won stablecoin issuance remains restricted under current rules, and the framework meant to change that is stuck. The Digital Asset Basic Act stalled at the end of 2025 over a single question: who gets to issue. The Bank of Korea wants issuers majority-controlled by banks and has pushed for a 51% ownership stake. The Financial Services Commission argues a hard threshold would shut fintechs out and choke competition. The government has flagged the bill as a priority for the second half of 2026, and earlier drafts would require foreign issuers like Circle to set up a licensed local presence.
The pilots have not waited for the law. KB Financial Group completed a trial in May covering stablecoin issuance, offline merchant payments, and remittances on the Kaia blockchain, and Kbank ran blockchain-based remittance tests in April with Ripple. KakaoBank itself was reported in late 2025 to be planning a won-backed stablecoin, months before the group signed with Circle.
The Kakao and Toss deals put Circle at the table before the rules are written. If the National Assembly settles the ownership fight this year, the won stablecoin race starts in earnest, and every would-be issuer will need rails on day one. Whether the winners run those rails through Circle or build their own is the one thing no MOU can settle.
Sources:
- Circle Official X announcement of the Kakao Group MOU.
- Circle Official X announcement of the Toss and Toss Bank agreement.
- UPI Kakao Group’s statement on the scope of the agreement, via Asia Today.
- The Korea Times Jeremy Allaire’s April 2026 remarks ruling out a Circle-issued won stablecoin.
- CoinDesk KakaoBank’s reported entry into the stablecoin sector, August 2025.
- CoinGecko $USDC circulating supply data.
