KakaoPay has completed a verification of wallet technology it plans to use for distributing digital assets such as won-denominated stablecoins. Kakao Group will use that as a basis to push to supply related solutions to external companies and financial institutions.

KakaoPay said on Sept. 9 it has completed a proof of concept (PoC) for digital asset wallet buildout technology.

The pilot focused on expanding the existing KakaoPay Money wallet system into an integrated digital asset wallet that can hold on-chain assets, including stablecoins.

Based on the existing wallet environment used by about 43 million users, KakaoPay verified functions such as digital asset transfers, payments and settlements, as well as the user interface.

KakaoBank is also applying bank-level security and regulatory requirements to verify digital asset wallet linkage, stability and usability. Kakao Group plans to check the technology across the different infrastructure environments of payments and banking to lay the groundwork for using it in digital asset distribution services.

It is also pursuing external supply, not just internal deployment. Kakao Group plans to provide wallet solutions to companies and financial institutions considering adopting digital assets, and also provide consulting tailored to domestic regulatory requirements and each company’s business environment.

It plans to bundle the technology and operational experience secured during development and verification and provide them in a way tailored to each company’s stablecoin distribution structure. It is also discussing related cooperation with major domestic companies and financial institutions considering adopting digital assets such as won-denominated stablecoins.

Shin Won-geun (신원근), CEO of KakaoPay and co-head of the group’s stablecoin joint task force, said, “Digital assets such as stablecoins require not only issuance but also the distribution stage where they are actually used.” He added, “Based on wallet infrastructure technology and experience responding to regulations, we will work with a range of partners to push to build a digital asset ecosystem.”