The Kaia public chain welcomes new development opportunities, with stablecoins and payment scenarios becoming the focus.

Recently, the Kaia public chain has become the focus of attention in the crypto market due to its strong token rally. Since its official launch in August 2024, Kaia has been continuously working on technical performance and ecological construction. Recently, Kaia's actions in stablecoin and payment scenarios have sparked heated discussions among industry investors. Senior officials from the foundation publicly stated, "The summer of Kaia's stablecoin is coming soon," indicating that its fiat-pegged coin plan is about to enter the implementation phase.

With the new government in power, the issuance of stablecoins pegged to the national currency has become the latest policy trend in South Korea. The Kaia team also announced plans to launch a Korean won stablecoin in cooperation with several super apps. Following the announcement, the prices of related concept stocks surged, and the Kaia token also saw a significant increase, rising from nearly $0.10 to a peak of $0.17, reflecting the market's optimism about the prospects of domestic stablecoin projects in South Korea.

Policy Tailwind Helps Launch Kaia Stablecoin Project

After the new South Korean government proposed policies to support the local currency stablecoin in 2025, Kaia quickly responded and announced plans to launch the Korean won stablecoin. Following the release of this news, the prices of related concept stocks surged, and the market is full of expectations for the Korean won stablecoin.

The Korean won stablecoin project proposed by Kaia is jointly promoted by multiple parties and is currently still in the planning stage, with no specific issuance timetable. With its digital wallet infrastructure and QR code payment system, the relevant payment platforms 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 transferred to the Financial Services Commission. The bill also significantly lowers the regulatory threshold, reducing the capital requirement 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 denominated in Korean won could lead to "currency runs," thereby affecting the competitiveness of the won.

In terms of policy inclination, the head of the Digital Asset Committee of the ruling party in South Korea stated that they will support private issuance and plan to specify 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 practical use of stablecoins in the future.

Despite the enthusiastic response from the market, the prospects of the Kaia stablecoin project remain uncertain. On one hand, issues related to monetary sovereignty and compliance with anti-money laundering regulations are still difficult to overcome; on the other hand, the issuance and redemption mechanisms of the stablecoin itself are yet to be verified, while also facing competition from multiple potential rivals. During the Bank of Korea's experiments with tokenized deposits and wholesale central bank digital currency, several large banks also announced plans to jointly issue stablecoins.

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

Cooperation with social giants, potential user base is huge

The Kaia public chain is a large blockchain network primarily targeted at the Asian region, formed by the merger of two blockchain projects with backgrounds in major social platforms, officially launching in August 2024. Its goal is to reach hundreds of millions of Asian users by seamlessly integrating Web3 services with mainstream social applications.

These two major social platforms dominate their respective markets, one with nearly 95% penetration in South Korea and about 50 million monthly active users; the other covers 70% of the population in Japan and holds a significant position in markets like Thailand and Taiwan. Based on the distribution capability of over 250 million users from these two social platforms, Kaia, positioned as a high-performance and user-friendly public blockchain, has always been seen as a potential project to promote the popularization of crypto applications. This year, the Kaia Foundation has raised external funding from several investment institutions to support ecological incubation and market promotion.

Before merging into Kaia, these two blockchain projects achieved significant results in their respective fields. One project was officially launched in 2019 and was an important representative of the Korean blockchain network, with its user base achieving a 1,100% growth in 2023, reaching 873,000; the other project was launched in 2022 and provided an NFT platform within its social platform, accumulating over 5.6 million users and completing about 560,000 NFT transactions. After the merger of the two chains, Kaia inherited the DeFi and gaming ecosystems from the former and the NFT and payment application scenarios from the latter, in order to achieve technical and user complementarity.

As a Layer 1 public chain compatible with Ethereum, Kaia technically inherits and optimizes the original consensus framework. Its consensus algorithm is based on an optimized Istanbul BFT, enabling rapid 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 aimed at enterprise and service scenarios, ensuring that once a block is produced, it is finalized, with no traditional risk of block rollback.

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 two major social platforms, allowing ordinary users to use 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 capability provides developers with flexible multi-chain interoperability.

Ecological Expansion from Gaming to Financial Services

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

Ecologically, Kaia has merged the application ecosystems of the original two projects, forming a comprehensive ecosystem covering 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 launched or are planned to launch on the Kaia network after the merger.

In addition, along 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 from multiple channels. According to official documents, the Kaia Wave program will offer a total value of $10 million worth of KAIA tokens, specifically for user acquisition and rewards.

In the DeFi space, Kaia has launched multiple decentralized exchanges and staking, lending projects, and the platform also supports infrastructure such as stablecoins and cross-chain bridges; in terms of NFTs, Kaia inherits the existing 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.

Following the example of Telegram and the Ton blockchain, the Dapp Portal is one of the main tools for the development of the Kaia ecosystem in terms of Mini DApp distribution and user engagement. The Dapp Portal is based 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 the need to download or install any new applications. In January of this year, Kaia jointly launched the first batch of 32 Mini DApps, enabling users to create wallets, play games, claim rewards, and trade NFTs with a single click, all without the need for an additional client.

In terms of official strategy, Kaia is gradually expanding from the gaming sector to financial services and general applications: at the beginning of 2025, a USD stablecoin yield product was launched on a social platform, 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 USD stablecoin on Kaia, providing stablecoin payment and cross-border transfer services to nearly 200 million users, marking the further expansion of Kaia's layout in the international stablecoin ecosystem. Overall, Kaia is accelerating the construction of a platform-level ecosystem, promoting the use case of "message as entry, on-chain as payment" in collaboration with industry partners.