South Korean financial companies Kakao Pay and KakaoBank have signed a memorandum of understanding (MoU) with crypto infrastructure provider Fireblocks to explore digital asset opportunities, including stablecoins. 

Under the agreement, the companies will conduct proof-of-concept tests for digital asset infrastructure suited to South Korea’s regulatory, security and service requirements. The initiative aims to help establish secure onchain infrastructure for the country’s emerging digital asset market. 

The announcement on Monday did not include a launch, investment or implementation timeline. 

Kakao Pay operates mobile payments and financial services, while KakaoBank is one of South Korea’s largest internet-only banks. Both are part of the broader Kakao ecosystem. Meanwhile, Fireblocks provides digital asset infrastructure to more than 2,500 institutions, including over 100 banks, according to the company. 

The agreement follows a separate memorandum signed by Kakao Group and stablecoin issuer Circle. In July, the two companies signed an MoU to explore blockchain-based payment infrastructure and digital asset technology. The collaboration included examining opportunities around won-denominated stablecoins and related services. 

Kakao Pay and KakaoBank are among several South Korean financial and technology companies exploring stablecoin opportunities as the country develops its regulatory framework for digital assets.

In May, KB Financial Group completed a won-denominated stablecoin pilot covering issuance, offline merchant payments and cross-border remittances. In July, fintech company Toss partnered with Optimism and Sunnyside Labs on a proof of concept for won-based stablecoin payment infrastructure.

Related: South Korean bank stocks surge on stablecoin trademark filings