Kaia Public Chain Stablecoin Program Draws Market Attention

Recently, the Kaia public chain has become a hotspot in the crypto market with its stablecoin project. Since its merger launch in August 2024, Kaia has been continuously making efforts in technology and ecology. Recently, its actions in the stablecoin and payment sectors have sparked extensive discussions in the industry. Senior foundation executives stated, "The summer of Kaia's stablecoin is approaching," suggesting that its fiat-pegged token plan is entering the implementation stage.

With the new South Korean government's support for local stablecoin policies, the Kaia team announced collaborations with several super apps to launch a Korean won stablecoin. This news has driven a surge in related concept stock prices, with the Kaia token rising from about $0.10 to a peak of $0.17, reflecting the market's optimism about the prospects of local stablecoin projects in South Korea.

South Korea's Policy Benefits Promote Stablecoin Projects

After the new South Korean government proposed a policy to support the local stablecoin in 2025, Kaia quickly responded and announced a plan for the won stablecoin. Following the announcement, related concept stocks surged, indicating strong market expectations for the won stablecoin.

Kaia's Korean won stablecoin project is being jointly promoted by several well-known companies and is currently still in the planning stage, with no specific issuance timetable yet. It is widely believed in the industry that some payment service providers are expected to become potential beneficiaries of the local stablecoin.

The current South Korean government is formulating the "Basic Law on Digital Assets" and discussing a regulatory framework that allows private institutions to issue stablecoins. The draft bill aims to relax rules for cryptocurrency exchanges, allowing non-bank institutions and payment service providers to issue stablecoins. Under the new framework, the approval authority for stablecoin issuers will be the Financial Services Commission, significantly lowering the regulatory threshold.

However, according to the South Korean Constitution, the authority 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 over these proposals, believing that indiscriminate issuance of stablecoins denominated in Korean won could affect the competitiveness of the won.

In terms of policy inclination, a relevant official from South Korea's ruling party stated that they would support private issuance and plan to clarify the legal provisions for stablecoin in the "Basic Law." The corporate group behind Kaia possesses large-scale payment and financial infrastructure, facilitating the practical use of stablecoins in the future.

Despite the positive market reaction, the prospects for the Kaia stablecoin project remain uncertain. On one hand, issues related to currency sovereignty and anti-money laundering compliance still need to be addressed; on the other hand, the issuance and redemption mechanisms of the stablecoin also require validation. At the same time, several potential competitors are also making moves in this field. Recently, several major banks in South Korea announced plans for a joint issuance of stablecoins.

Therefore, although Kaia's stablecoin plan has attracted market attention, it still faces many challenges in obtaining regulatory approval and being successfully implemented.

Background and Technical Features of Kaia Public Chain

Kaia public chain is a large blockchain network aimed at the Asian region, formed by the merger of two well-known chains, and will officially launch in August 2024. Its goal is to reach hundreds of millions of Asian users by seamlessly integrating Web3 services with mainstream communication applications.

With the distribution capability of over 250 million users accumulated from two major social platforms, Kaia is seen as a potential project to promote the popularization of cryptocurrency applications. This year, the Kaia Foundation has received external funding support from multiple investment and financing institutions for ecological incubation and market promotion.

As a Layer 1 public chain compatible with Ethereum, Kaia technically inherits and optimizes the IBFT consensus framework. Official documentation shows 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. Kaia adopts a BFT consensus aimed at enterprise and service scenarios, ensuring that once a block is produced, it is definitively confirmed, eliminating the traditional risk of block rollback.

The Kaia network nodes are divided into consensus nodes, proxy nodes, and endpoint nodes. Consensus nodes are managed by core operators and are responsible for block generation and verification. The network design ensures that over 50 nodes can participate in consensus, balancing throughput and decentralization.

In terms of technical features, Kaia supports functions such as account abstraction and fee delegation, simplifying the user experience; at the same time, it integrates identities and payment channels of mainstream communication applications, allowing ordinary users to access on-chain services without additional registration. Kaia also maintains compatibility with EVM chains like Ethereum and plans to support CosmWasm smart contracts; it integrates with industry-leading cross-chain bridges, providing developers with flexible multi-chain interoperability.

Ecological Development and Future Planning

At the initial stage of Kaia's launch, user and funding metrics are in the early stages. By mid-2025, Kaia ranks around the top fifty globally in DeFi TVL. In terms of on-chain activity, the official disclosure indicates that over 40 million users have accessed the Mini DApp portal. The number of wallets and transaction volume grew rapidly in the early stages of the launch, but the overall level is still lower than that of mainstream public chains.

Ecologically, Kaia has merged the application ecosystems of two existing chains, forming a comprehensive ecosystem covering multiple fields such as DeFi, NFT, GameFi, and 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.

To support ecological development, the Kaia Foundation has launched a Builder Support Program to provide multi-faceted support for promising Dapps, helping them reach Web2 and Web3 users. The program offers a total value of $10 million in tokens for user acquisition and rewards.

In the DeFi space, Kaia has launched multiple decentralized exchanges as well as staking and lending projects; in terms of NFTs, Kaia has inherited the user base of the original platform; its GameFi ecosystem benefits from the user groups and partner resources of two major social platforms, and some game developers have started to launch mobile games, NFT items, and other content on Kaia.

Mini DApp distribution is one of the main strategies for the development of the Kaia ecosystem. Users can access games, social interactions, trading, and other Mini DApps directly within the chat interface without the need to download and install new applications. In January of this year, the first batch of 32 Mini DApps was launched, allowing users to create wallets, play games, claim rewards, trade NFTs, and more with just one click.

In its official strategy, Kaia is gradually expanding from the gaming sector to financial services and general applications: a US dollar stablecoin yield product was launched in early 2025, with future plans including the introduction of lending, perpetual contracts, payment, and asset tokenization DeFi protocols, as well as achieving seamless exchange functionality between the 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 Kaia's further expansion in the international stablecoin ecosystem. Overall, Kaia is accelerating the construction of a platform-level ecosystem, promoting the usage scenario of "message as an entry point, on-chain as payment" in collaboration with industry partners.