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KakaoPay registers 18 KRW trademarks in preparation for stablecoin issuance.
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KakaoPay’s shares have surged over 200% amid growing stabilitycoin market optimism.
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Political support boosts KRW stablecoin approval, aiding KakaoPay’s market entry.
KakaoPay, a South Korean fintech company, has filed 18 trademarks for a stablecoin backed by the Korean won (KRW). This move has sent KakaoPay’s stock price up more than 200% over the past month. The filings indicate the company’s plans to enter South Korea’s digital asset market, as the country moves towards creating a formal regulatory structure for stablecoins.
KakaoPay filed multiple trademark applications with the Korean Intellectual Property Office on June 17, including “KRWKP,” KWRP,” and KPKRW.
Trademark filings and Company Position
The trademark applications were filed under financial services categories, which include virtual asset transactions and electronic transfer. KakaoPay representatives said that while the company has not yet announced a stablecoin plan, they filed trademark applications as a precautionary measure to protect branding rights.
Industry sources view the move, however, as a clear indicator that KakaoPay wants to be a major issuer on the KRW stablecoins market once regulations have been implemented.
Related South Korea Explores Won Stablecoin As Bank of Korea Prioritizes Cautiousness
Market Reactions to Stablecoin Plans
The market has responded with a strong bullish sentiment. According to Google Finance, KakaoPay stock has risen by over 200% during the past month. It went from 30,800 won ($22.25), on May 23, to 94700 won ($68.60).
On Monday, June 23, trading activity pushed the stock an additional 17.3% higher. This shows that investors are eagerly anticipating the company’s entry in the digital assets space.
Favorable Regulatory Climate
KakaoPay is aligning its preparations with the favorable political and regulatory climate in South Korea. The lawmakers of South Korea have introduced the Basic Digital Asset Act, a proposed legislation that would allow private companies to officially issue KRW-backed stabilizecoins.
Related Ripple’s RLUSD stablecoin is now available in 173 countries via AlchemyPay
Lee Jae Myung has also pledged his support for the approval of stablecoins backed by local currency and issued in partnership with private sector.
Financial analysts have noted that KakaoPay has the right position to issue a stablecoin. The company currently holds $429 million worth of prepaid user balances which could be used as collateral for the token.
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