Kaia Public Chain Enters a New Era of Stablecoins

Recently, the Kaia public chain has become the focus of the crypto market with its strong token growth. Since its launch in August 2024, Kaia has been continuously strengthening its technical performance and ecosystem development. Recently, its actions in the stablecoin and payment scenarios have sparked heated discussions among industry investors. Senior officials from the foundation stated, "The summer of Kaia's stablecoin is coming soon," indicating that its fiat-backed token plan will enter the implementation stage.

With the new South Korean government's support for the issuance policy of stablecoins pegged to the Korean won, the Kaia team announced plans to launch a Korean won stablecoin in collaboration with several super apps. This news triggered a strong market reaction, with related concept stocks surging in price, and the Kaia token rising from nearly $0.10 to a peak of $0.17, demonstrating the market's high expectations for the prospects of local stablecoin projects in South Korea.

Borrowing the Policy Tailwind, the Kaia Stablecoin Project Launches

After the new South Korean government proposed to support the local stablecoin policy in 2025, Kaia quickly responded and announced plans to launch a Korean won stablecoin. Following this announcement, the market is filled with anticipation for the Korean 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 companies are also widely viewed as potential beneficiaries of the local stablecoin.

The current South Korean government is formulating the "Basic Law on Digital Assets" to discuss a regulatory framework that allows private institutions to issue stablecoins. The draft legislation aims to permit non-bank institutions and payment service providers to issue stablecoins and relax the rules for cryptocurrency exchanges. Under this framework, the approval authority for stablecoin issuers will be assumed by the Financial Services Commission. The bill also significantly lowers the regulatory threshold, reducing the capital requirement for issuers from 5 billion KRW to 500 million KRW.

However, according to the Constitution of South Korea, the issuance of 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 may lead to "currency runs" and affect the competitiveness of the won.

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

Despite the enthusiastic market response, the prospects of the Kaia stablecoin project still face challenges. Issues of monetary sovereignty and compliance with anti-money laundering regulations are difficult to overcome, and the issuance and redemption mechanisms for the stablecoin are yet to be validated. Additionally, several potential competitors are also targeting this market. During the Bank of Korea's experiments with tokenized deposits and wholesale central bank digital currency, several major banks announced plans to jointly issue stablecoins.

Therefore, while Kaia's stablecoin plan has garnered market attention and expectations, there are still many uncertainties regarding whether it can obtain regulatory approval and be successfully implemented.

Social giants join forces, potential user base is vast

Kaia public chain is a large blockchain network primarily aimed at the Asian region, formed by the merger of two well-known chains, officially launching in August 2024. Its goal is to seamlessly integrate with mainstream social platforms to bring Web3 services to hundreds of millions of Asian users.

With the distribution capability of over 250 million users accumulated from two major social media platforms, Kaia, positioned as a high-performance and user-friendly public blockchain, has long been regarded as one of the potential stocks to promote the popularization of cryptocurrency 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, both original chains performed impressively. One chain achieved an astonishing 1,100% growth in user numbers in 2023, reaching 873,000; the other chain provided an NFT platform, accumulating over 5.6 million users and completing approximately 560,000 NFT transactions. After the merge, Kaia inherited the ecological advantages of both chains, achieving a complementarity of technology and users. The official vision emphasizes that Kaia will "bring Web3 to the fingertips of hundreds of millions of users in Asia" and build an efficient platform to support the development of large-scale decentralized applications.

As an Ethereum-compatible Layer 1 public chain, Kaia inherits and optimizes an advanced consensus framework technically. Its consensus algorithm is based on the 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 just 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 final and there is no traditional risk of block rollback.

In terms of technical features, Kaia supports account abstraction and fee delegation functions, significantly simplifying the user experience; it also integrates identity and payment channels from mainstream 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 leading cross-chain bridge integration capability provides developers with flexible multi-chain interoperability.

Expanding from the Gaming Sector to Financial Services

When Kaia was just launched, user and funding metrics were still in the preliminary stage. By mid-2025, Kaia ranked approximately in the top fifty globally in DeFi TVL, reflecting the scale of its early-stage ecosystem. In terms of on-chain activity, Kaia officials have disclosed that over 40 million users have visited the Mini DApp portal. The number of wallets and trading volume grew rapidly in the early stages of launch, but the overall level is still lower than that of mature mainstream public chains like Ethereum, Solana, and BNB.

In terms of ecology, Kaia has merged the application ecosystems of two original chains, forming a comprehensive ecosystem covering multiple fields such as DeFi, NFT, Game Finance (GameFi), and Real World Assets (RWA). According to official statistics, after the merger, there are already over 420 decentralized applications and game services that have been or are planned to be launched on the Kaia network.

In addition, with the launch of the Kaia mainnet, the parties involved have also jointly launched a builder support program called Kaia Wave. 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. Official documents state that the Kaia Wave program will provide a total value of $10 million in KAIA tokens, specifically for user acquisition and rewards.

In the DeFi space, Kaia has launched multiple decentralized exchanges as well as staking and lending projects. The platform also supports stablecoins, cross-chain bridges, and other infrastructure. 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 begun to launch mobile games, NFT items, and other content on Kaia.

Following the cooperative model of other well-known platforms and blockchains, the Dapp Portal is one of the main tools for the development of the Kaia ecosystem in terms of Mini DApp distribution and user reach. The Dapp Portal is built on the Kaia chain and is accessible to users through the official accounts on mainstream social platforms, allowing them to access games, social interactions, trading, and other Mini DApps within the chat interface without the need to download or install any new applications. In January of this year, the relevant parties jointly launched the first batch of 32 Mini DApps, enabling users to create wallets, play games, claim rewards, and trade NFTs with just one click, without the need for an additional 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 subsequent plans including the introduction of lending, perpetual contracts, payment, and asset tokenization DeFi protocols, as well as achieving seamless exchange functions between the Korean won and stablecoins.

In May of this year, a well-known stablecoin officially deployed its USD stablecoin on Kaia, providing stablecoin payment and cross-border transfer services to nearly 200 million users, marking 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.