Circle signs stablecoin partnerships with South Korea's Kakao and Toss amid regulatory push

Jul 23, 2026

USDC issuer Circle has secured strategic partnerships with South Korea's leading digital platforms, Kakao and Toss, to explore stablecoin payment infrastructure and cross-border remittances. The agreements come as South Korean regulators debate the Digital Asset Basic Act and stablecoin issuer eligibility. While local firms like KB Financial and Kbank run preliminary pilots, Circle's Dante Disparte warns that regulatory uncertainty keeps institutions from moving beyond prototypes to live services.

Circle Kakao partnership strategy

▪Kakao Group plans to build digital infrastructure and foundational services for a won-backed stablecoin centered on a digital wallet named Super Wallet.
▪The partnership between Kakao Group and Circle Internet Group focuses on connecting Circle's blockchain and global payment infrastructure with Kakao's consumer platforms and financial services.
▪Kakao Group, Kakao Pay, and Kakao Bank signed a strategic memorandum of understanding with Circle Internet Group on July 23, 2026.

Circle Toss collaboration agreement

▪Toss Bank will explore using stablecoin and blockchain technology to improve the speed and efficiency of global payment and cross-border settlement structures.
▪Toss and Toss Bank plan to explore connecting Circle's infrastructure with their ecosystems to test biometric authentication-based payments and USDC-based financial instruments.

South Korean stablecoin regulation

▪South Korea's government listed advancing the Digital Asset Basic Act among its priorities for the second half of 2026 in its economic growth strategy announced on July 14, 2026.
▪Circle Internet Group Chief Strategy Officer Dante Disparte stated that regulatory uncertainty is keeping South Korean banks and fintech firms from moving beyond pilot projects.
▪The Bank of Korea argues that banks should hold a majority stake in stablecoin issuers, while the Financial Services Commission warns this could reduce competition and innovation.

Won-backed stablecoin infrastructure

▪Hyundai Card led a stablecoin payment trial earlier in July 2026 involving Hyundai Motor units in the United States and Mexico for cross-border settlement.
▪KB Financial Group completed a pilot in May 2026 covering stablecoin issuance, offline merchant payments, and cross-border remittances via the Kaia blockchain.
▪Internet bank Kbank partnered with Ripple in April 2026 to test blockchain-based remittances while South Korea weighs stablecoin rules.

OpenUSD consortium regulatory risks

▪The OpenUSD dollar stablecoin project was unveiled in June 2026 with participation from over 140 global companies, including Visa, Mastercard, and BlackRock.
▪Circle Internet Group Chief Strategy Officer Dante Disparte stated that OpenUSD is likely to invite regulatory risks because its consortium structure resembles the collapsed Libra project.

USDC network effects advantage

▪Circle Internet Group CEO Jeremy Allaire stated in April 2026 that Circle is not considering issuing a won-denominated stablecoin directly.
▪Circle Internet Group Chief Strategy Officer Dante Disparte stated that USDC is supported by hundreds of millions of wallets and is available on 34 blockchain platforms.