According to Gate News bot and The Block, the stock price of KakaoPay, a giant in mobile payment services in South Korea, has risen by over 200% in the past month due to growing expectations that this giant will venture into the stablecoin sector in the near future. The company is a subsidiary of Kakao, one of South Korea's largest internet groups.
According to Google Finance data, KakaoPay's stock price has risen by 208% from 30,800 won (approximately $22.25) on May 23 to 94,700 won (approximately $68.6). On Monday morning, the company's stock price increased by 17.3% during trading on the Korean stock market, while the market was still open.
After the recently elected South Korean President Lee Jae-myung promised to collaborate with the private sector to approve and promote stablecoins backed by local currency, KakaoPay began to surge in the local stock market.
Earlier this month, a South Korean lawmaker proposed legislation to expedite the approval of a won stablecoin while fulfilling Lee Myung-bak's other cryptocurrency commitments.
Last week, Kakao submitted six stablecoin patent applications — PKRW, KKRW, KRWP, KPKRW, KRWKP, KRWK, further solidifying expectations for its potential stablecoin project. These stock codes seem to combine Kakao (or KakaoPay) with the Korean Won (KRW).
These applications are divided into three categories: electronic, financial services, and IT development. The applications in the financial services sector specify the classification of services, including cryptocurrency transfers, brokerage, electronic money payments, and token issuance.
KakaoPay stated to local news media ZDNET Korea that the patent application is a preemptive measure to respond to potential stablecoin regulations, and the company will continue to monitor the developments.
A report from Eugene Investment & Securities indicates that KakaoPay will be a major beneficiary of the development of stablecoins in South Korea, as its current business model is most receptive to the opportunities presented by stablecoins.
The report states: "When stablecoins replace payments and remittances, the ability to issue tokens directly depends on how much collateral you have. In this case, this collateral is the prepaid balance."
The payment platform currently has approximately $429 million in user prepaid balances, dominating over competitors. The report states that KakaoPay's "pay after recharge" system is most suitable for the natural adoption of stablecoins.
At the same time, South Korea's stablecoin legislation is aimed at responding to the rapidly evolving regulatory landscape in the United States. The "GENIUS Act" is a fundamental piece of legislation concerning stablecoins and their issuers, which was passed by the U.S. Senate earlier this month and is currently awaiting approval from the House of Representatives.
View Original
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Driven by the trend of stablecoin, the stock price of KakaoPay in South Korea has soared by 200% in the past month.
According to Gate News bot and The Block, the stock price of KakaoPay, a giant in mobile payment services in South Korea, has risen by over 200% in the past month due to growing expectations that this giant will venture into the stablecoin sector in the near future. The company is a subsidiary of Kakao, one of South Korea's largest internet groups.
According to Google Finance data, KakaoPay's stock price has risen by 208% from 30,800 won (approximately $22.25) on May 23 to 94,700 won (approximately $68.6). On Monday morning, the company's stock price increased by 17.3% during trading on the Korean stock market, while the market was still open.
After the recently elected South Korean President Lee Jae-myung promised to collaborate with the private sector to approve and promote stablecoins backed by local currency, KakaoPay began to surge in the local stock market.
Earlier this month, a South Korean lawmaker proposed legislation to expedite the approval of a won stablecoin while fulfilling Lee Myung-bak's other cryptocurrency commitments.
Last week, Kakao submitted six stablecoin patent applications — PKRW, KKRW, KRWP, KPKRW, KRWKP, KRWK, further solidifying expectations for its potential stablecoin project. These stock codes seem to combine Kakao (or KakaoPay) with the Korean Won (KRW).
These applications are divided into three categories: electronic, financial services, and IT development. The applications in the financial services sector specify the classification of services, including cryptocurrency transfers, brokerage, electronic money payments, and token issuance.
KakaoPay stated to local news media ZDNET Korea that the patent application is a preemptive measure to respond to potential stablecoin regulations, and the company will continue to monitor the developments.
A report from Eugene Investment & Securities indicates that KakaoPay will be a major beneficiary of the development of stablecoins in South Korea, as its current business model is most receptive to the opportunities presented by stablecoins.
The report states: "When stablecoins replace payments and remittances, the ability to issue tokens directly depends on how much collateral you have. In this case, this collateral is the prepaid balance."
The payment platform currently has approximately $429 million in user prepaid balances, dominating over competitors. The report states that KakaoPay's "pay after recharge" system is most suitable for the natural adoption of stablecoins.
At the same time, South Korea's stablecoin legislation is aimed at responding to the rapidly evolving regulatory landscape in the United States. The "GENIUS Act" is a fundamental piece of legislation concerning stablecoins and their issuers, which was passed by the U.S. Senate earlier this month and is currently awaiting approval from the House of Representatives.