KakaoBank of South Korea has brought the stablecoin initiative to the development stage.

KakaoBank, the digital bank belonging to the Kakao group, has moved its neo stablecoin project pegged to the won into the official development phase, according to Newspim. The bank's website is also recruiting for backend blockchain positions, requiring expertise in smart contracts, token standards, transaction management, and full node operation. Previously, KakaoBank stated that it is considering various avenues for expanding digital finance, including issuance and custody of digital assets.

KakaoBank along with other financial units of the group has established a dedicated stablecoin team to build a digital financial ecosystem. KakaoPay has also submitted six trademark applications for a stablecoin code combining the name Kakao and the won. This move comes as Naver is reportedly preparing to launch a wallet for its stablecoin project in Busan and merge with Upbit. With tens of millions of users, Kakao and Naver view stablecoins as a growth driver as South Korea promotes monetary sovereignty in the face of USD stablecoin dominance.