Can the Kaia Public Chain Enter the "Stablecoin Era"?

Recently, the Kaia public chain has become the focus of the cryptocurrency market due to the strong performance of its token. Since the integration of Klaytn and Finschia went live in August 2024, Kaia has continued to make efforts in technical performance and ecosystem development. Recently, its actions in the stablecoin and payment sectors have sparked heated discussions among industry investors. The foundation's CEO publicly stated, "The era of Kaia's stablecoin is about to arrive," indicating that its fiat-backed token plan is entering the implementation stage.

With the inauguration of the new president, the support for the issuance of stablecoins pegged to the Korean won has become the latest policy direction in South Korea. The Kaia team also announced plans to collaborate with several super apps to launch a Korean won stablecoin. This news has led to a surge in the stock prices of related concepts, 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.

Riding the Policy Wind, Kaia Stablecoin Project Launch

In 2025, after the new South Korean government proposed policies to support the local currency stablecoin, Kaia quickly responded and announced plans to launch a won stablecoin. Following this announcement, related concept stocks surged, and the market is filled with expectations for the won stablecoin.

The Korean won stablecoin project proposed by Kaia is being jointly promoted by multiple parties and is currently still in the planning stage, with no specific issuance timetable yet. With its digital wallet infrastructure and QR code payment system, related payment companies are also widely regarded as potential beneficiaries of the local stablecoin.

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 permit 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 under the Financial Services Commission. The bill also significantly lowers the regulatory thresholds, reducing the capital requirements for issuers from the previously proposed 5 billion KRW to 500 million KRW.

However, according to the South Korean Constitution, the right to issue legal currency 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 a "currency run," thereby affecting the competitiveness of the won.

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

However, in the face of enthusiastic market feedback, the prospects of the Kaia stablecoin project are not clear. On one hand, issues such as currency sovereignty and compliance with anti-money laundering are still difficult to overcome; on the other hand, the issuance and redemption mechanisms of the stablecoin itself also need to be validated, and there are multiple potential competitors already eyeing this field. Recently, several large banks in South Korea publicly announced plans to jointly issue stablecoins.

Therefore, although Kaia's stablecoin project was launched amid policy opportunities, there are still many uncertainties regarding whether it can obtain regulatory approval and be successfully implemented.

Social giants join forces, boasting 250 million "potential users"

Kaia public chain is a large blockchain network mainly aimed at the Asian region, formed by the merger of two well-known blockchain backgrounds, and it will officially launch in August 2024. Its goal is to reach hundreds of millions of Asian users by seamlessly integrating with mainstream social applications.

These social platforms have a very high penetration rate in their respective markets, with a distribution capability of over 250 million users, making Kaia, positioned as a high-performance and user-friendly public chain, always regarded as one of the "potential stocks" to promote the popularization of crypto applications. This year, the Kaia Foundation has raised external funds from multiple investment institutions to support ecological incubation and market promotion.

Before merging into Kaia, the two original chains had different development histories and advantages. After the merger, Kaia inherits their respective ecosystems and application scenarios to achieve a 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 an Ethereum-compatible Layer 1 public chain, Kaia technically inherits and optimizes an advanced 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.

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

Expanding from the gaming sector to financial services

When Kaia was first launched, user and funding indicators were still in the preliminary stage. By mid-2025, Kaia was ranked approximately in the top fifty globally in the DeFi TVL ranking, reflecting the scale of its ecosystem at the initial stage. In terms of on-chain activity, Kaia's official reports disclosed that over 40 million users had visited the Mini DApp portal. The number of wallets and transaction volume grew rapidly in the early stages after launch, but the overall level still lags far behind mature mainstream public chains such as Ethereum, Solana, and BNB.

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

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

In the DeFi space, Kaia has launched multiple decentralized exchanges and staking, lending projects. The platform also supports stablecoins, cross-chain bridges, and other infrastructure. In terms of NFTs, Kaia inherits the user base of the original platform, and its GameFi ecosystem benefits from the user groups and partner resources of two major social platforms. Some game developers have started to launch mobile games, NFT items, and other content on Kaia.

In terms of distribution and user reach for Mini DApps, the Dapp Portal is one of the main initiatives 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 interactions, trading, and other Mini DApps directly within the chat interface without needing to download and install any new applications. In January of this year, relevant parties jointly launched the first batch of 32 Mini DApps, enabling users to create wallets, play games, claim rewards, and trade NFTs with 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 has launched a USD stablecoin yield product on relevant platforms, with future plans including the introduction of lending, perpetual contracts, payment, and asset tokenization DeFi protocols, as well as achieving seamless exchange between Korean Won and stablecoins.

In May of this year, a well-known stablecoin issuer officially deployed its US dollar stablecoin on Kaia, providing stablecoin payment and cross-border transfer services to nearly 200 million users, marking an expansion of Kaia's presence in the international stablecoin ecosystem. Overall, Kaia is accelerating the construction of a platform-level ecosystem, working with industry partners to promote the use case of "message as the entry point, on-chain as the payment."