Kaia Public Chain Focuses on Stablecoin Development, Aiming to Become the Leader of the Local Encryption Ecosystem in South Korea

Recently, the Kaia public chain has become one of the focal points of the encryption market due to the strong rise in its token price. Since its merger and launch with two other public chains in August 2024, Kaia has been continuously working on its technical performance and ecological construction. Recently, its actions in the stablecoin and payment scenarios have sparked heated discussions among industry investors. A senior official from a certain foundation openly stated, "Kaia's stablecoin summer is coming soon," hinting that its fiat-pegged token plan is about to be implemented.

With the new government coming to power, the issuance of stablecoins pegged to the Korean won has become the latest policy trend in South Korea. The Kaia team has taken this opportunity to announce collaborations with several super apps to launch a Korean won stablecoin. Following this announcement, the stock prices of related companies surged significantly, and the price of Kaia tokens rose from nearly $0.10 to a peak of $0.17, reflecting the market's optimism about the prospects of local stablecoin projects in South Korea.

Take Advantage of Lending Policies, Kaia Stablecoin Project on the Agenda

After the newly elected president of South Korea proposed a policy to support the local stablecoin in 2025, Kaia quickly responded and announced plans to launch a Korean won stablecoin. Following this news, the prices of related concept stocks surged, and the market is filled with expectations for the Korean won stablecoin.

The Korean won stablecoin project proposed by Kaia is jointly promoted by several well-known companies and is currently still in the planning stage, with no specific issuance timeline yet. Meanwhile, a certain payment company is widely regarded as a potential beneficiary of the local stablecoin due to its digital wallet infrastructure and QR code payment system.

The current South Korean government is formulating the "Basic Law on Digital Assets" and actively discussing a regulatory framework that allows private institutions to issue stablecoins. The draft bill aims to allow non-bank institutions and payment service providers to issue stablecoins and relax the rules for cryptocurrency exchanges. Under this proposed framework, the approval authority for stablecoin issuers will be the Financial Services Commission. The bill also significantly lowers the regulatory thresholds, reducing the capital requirement for issuers from the previously proposed 5 billion KRW to 500 million KRW.

However, according to the Constitution of South Korea, the authority to issue legal tender belongs to the central bank, and private institutions face legal obstacles in issuing fiat-backed tokens. The Bank of Korea has expressed concerns about these proposals, believing that indiscriminately issuing stablecoins pegged to the Korean won could lead to "currency runs," thereby affecting the competitiveness of the Korean won.

In terms of policy inclination, the head of the Digital Assets Committee of the ruling party in South Korea stated that they will support private issuance and plan to clarify the legalization of stablecoin in the "Basic Law". The group that Kaia relies on itself possesses large-scale payment and financial infrastructure, which provides a convenient channel for the actual use of stablecoin in the future.

Despite the enthusiastic response from the market, the prospects of the Kaia stablecoin project still face numerous challenges. On one hand, issues related to currency sovereignty and anti-money laundering compliance remain difficult to overcome; on the other hand, the issuance and redemption mechanisms of the stablecoin itself still need to be validated, while also facing challenges from multiple potential competitors. Recently, several large banks in South Korea have also announced plans to jointly issue stablecoins.

Therefore, although Kaia's stablecoin plan has sparked many speculations in the context of policy opportunities, whether it can obtain regulatory approval and be successfully implemented still faces many uncertainties.

Social giants join forces, with a potential user base of 250 million

Kaia public chain is a large blockchain network primarily aimed at the Asian region, formed by the merger of two well-known blockchain projects, officially launched in August 2024. Its goal is to reach hundreds of millions of Asian users by seamlessly integrating Web3 services with two major social platforms.

These two social platforms are the most popular instant messaging applications in South Korea and Japan, with extremely high penetration rates in their respective countries. Based on the distribution capability of over 250 million users from the two major social platforms, Kaia, positioned as a high-performance and user-friendly public blockchain, has always been regarded as one of the "potential stocks" that promote the popularization of encryption applications. This year, the Kaia Foundation has raised external funds from multiple investment and financing institutions to support ecological incubation and market promotion.

Before the two merged into Kaia, they achieved significant results in their respective fields. One network experienced an astonishing user growth of 1,100% in 2023, reaching 873,000 users; the other offered an internal NFT platform with over 5.6 million cumulative users, completing about 560,000 NFT transactions. After the merger, Kaia inherits the application scenarios of both parties in multiple fields such as DeFi, gaming, NFT, and payments, achieving the complementarity of technology and users. The official vision emphasizes that Kaia will "put Web3 at the fingertips of hundreds of millions of users in Asia" and create an efficient platform to support the development of large-scale decentralized applications.

As a Layer 1 public chain compatible with Ethereum, Kaia technically inherits and optimizes the original consensus framework. Its consensus algorithm is based on the optimized Istanbul BFT, enabling fast final confirmation of blocks and supporting multi-node participation. The official documentation states that the Kaia network can handle up to 4000 transactions per second, with a block generation time of only 1 second and instant transaction finality. Unlike conventional PoW/PoS, Kaia adopts a BFT consensus designed for enterprise and service scenarios, ensuring that once a block is produced, it is definitively confirmed, eliminating the traditional risks of block rollback.

In terms of technical features, Kaia supports functions such as account abstraction and fee delegation, greatly simplifying the user experience; at the same time, it integrates identity and payment channels from two major social platforms, allowing ordinary users to use on-chain services without additional registration. Kaia also maintains equivalent compatibility with EVM chains such as Ethereum and plans to support CosmWasm smart contracts; its integration capabilities with industry-leading cross-chain bridges provide developers with flexible multi-chain interoperability.

Expanding from the gaming sector to financial services

When Kaia was first launched, user and capital indicators were still in the preliminary stage. By mid-2025, Kaia was ranked approximately in the top fifty globally in the DeFi TVL rankings, reflecting the scale of its early-stage ecosystem. In terms of on-chain activity, Kaia's official report disclosed that over 40 million users had accessed the Mini DApp portal. The number of wallets and trading volume grew rapidly in the initial stage of launch, but overall levels are still far below those of mature mainstream public chains such as Ethereum, Solana, and BNB.

Ecologically, Kaia has merged the application ecosystems of the original two networks, forming a comprehensive ecosystem that covers multiple fields such as DeFi, NFT, Game Finance (GameFi), and Real World Assets (RWA). According to official statistics, there are already over 420 decentralized applications and game services that have been or are planned to be launched on the Kaia network after the merger.

In addition, with the launch of the Kaia mainnet, a builder support program called Kaia Wave has also been introduced. This program aims to provide multi-faceted support for promising Dapps, enabling them to reach consumer users in both Web2 and Web3, and gain additional advantages through multiple channels. According to official documents, the Kaia Wave program will provide a total value of $10 million in KAIA tokens, specifically for user acquisition and rewards.

In the DeFi field, Kaia has launched several decentralized exchanges and staking, lending projects, and the platform also supports stablecoins, cross-chain bridges, and other infrastructure; in terms of NFTs, Kaia inherits the original platform's user base, and its GameFi ecosystem benefits from the user groups and partner resources of two major social platforms, with some game developers starting to launch mobile games, NFT items, and other content on Kaia.

In terms of Mini DApp distribution and user engagement, the Dapp Portal is one of the main tools for the development of the Kaia ecosystem. The Dapp Portal is built on the Kaia chain and is accessible to users through the official accounts on social platforms, allowing them to access games, social features, trading, and other Mini DApps within the chat interface without the need to download any new applications. In January of this year, the first batch of 32 Mini DApps was launched, enabling users to create wallets, play games, claim rewards, and trade NFTs with just one click, without the need to install a separate client.

In its official strategy, Kaia is gradually expanding from the gaming sector to financial services and general applications: by early 2025, it had launched a USD stablecoin yield product on a certain social platform, with future plans including the introduction of lending, perpetual contracts, payments, and asset tokenization DeFi protocols, as well as achieving seamless exchange between the Korean won and stablecoins.

In May of this year, a well-known stablecoin project officially deployed its US dollar stablecoin on Kaia, providing stablecoin payment and cross-border transfer services to nearly 200 million users, marking further expansion of Kaia's layout in the international stablecoin ecosystem. Overall, Kaia is accelerating the construction of a platform-level ecosystem, promoting the usage scenario of "message as entry, on-chain as payment" in collaboration with industry partners.