KakaoPay and KakaoBank will work with global digital asset infrastructure firm Fireblocks to help build domestic digital asset distribution infrastructure centered on stablecoins.

KakaoPay and KakaoBank said on Sept. 22 they signed a memorandum of understanding with Fireblocks to help build South Korea’s digital asset ecosystem.

Fireblocks provides infrastructure needed for digital asset payments, settlement, custody and tokenisation for global financial institutions. It has built digital asset infrastructure with about 2,500 institutions, including more than 100 banks worldwide.

Under the agreement, the three companies will analyze infrastructure demand in the domestic digital asset market and jointly explore related business opportunities. They plan in particular to review digital asset distribution solutions suited to the domestic regulatory environment, security framework and service conditions, centered on stablecoins.

They will also identify proof-of-concept opportunities to verify the applicability of related technologies and solutions. Through this, they plan to flesh out measures to build infrastructure needed for the domestic digital asset market.

Kakao Group has previously said it plans to build a Korea-style digital asset ecosystem with various partners by using its capabilities in platforms and finance and blockchain.

Michael Shaulov (마이클 샤울로프), Fireblocks' chief executive and co-founder, said, "It is very important for Korean banks and payment platforms to use digital asset infrastructure designed from the early stages to meet institutional-grade requirements," adding, "KakaoPay and KakaoBank are currently laying that foundation."

Yun Ho-young (윤호영), chief executive of KakaoBank and co-head of Kakao Group’s stablecoin joint task force, said, "Based on the two companies’ technology and capabilities, we will research safe and convenient digital asset services and create new possibilities that can broaden customers’ financial lives."

Shin Won-geun (신원근), chief executive of KakaoPay and co-head of Kakao Group’s stablecoin joint task force, said, "The success or failure of the nascent domestic digital asset market depends on how smoothly digital asset distribution is carried out," adding, "The strategic partnership with Fireblocks is one of the important cornerstones for laying that foundation."