Can the Kaia Public Chain Step into the "Stablecoin Era"?

Recently, the Kaia public chain has become the focus of the cryptocurrency market due to its strong token growth. Since its launch in August 2024, Kaia has been continuously working on technical performance and ecological development. Recently, its actions in the stablecoin and payment scenarios have sparked enthusiastic discussions among industry investors. Senior foundation officials stated, "The summer of Kaia's stablecoin is coming soon," hinting that its fiat-pegged token plan is about to be implemented.

With the new government coming to power, the issuance of stablecoins pegged to the Korean Won has become the latest policy direction. The Kaia team announced plans to launch a Korean Won stablecoin in collaboration with several super apps. This news has sparked heated discussions in the market, with related concept stocks soaring, and the price of Kaia tokens 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.

Kaia Stablecoin Project Supported by Policies

In 2025, after the new South Korean government proposed a policy to support local currency stablecoins, Kaia quickly responded and announced plans to launch a Korean won stablecoin. This news triggered a strong market reaction, with related concept stocks seeing a significant increase in price, indicating that the market is full of expectations for the Korean won stablecoin.

The Korean won stablecoin project proposed by Kaia is still in the planning stage, with no specific issuance timetable yet. With its digital wallet infrastructure and QR code payment system, the relevant partners are also seen as potential beneficiaries of the local stablecoin.

The current South Korean government is formulating relevant laws and discussing a regulatory framework that allows private institutions to issue stablecoins. The draft bill aims to ease the rules for cryptocurrency exchanges, enabling them to participate in lending and autonomously choose tokens to list. According to the proposed framework, the approval authority for stablecoin issuers will be under 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 issuance of legal tender is the prerogative of the central bank, and private institutions face legal obstacles in issuing fiat-pegged 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.

Regarding policy orientation, the head of the Digital Asset Committee of the ruling party in South Korea stated that it will support private issuance and plans to clarify the legal terms for the legalization of stablecoins in the law. The partners that Kaia relies on have large-scale payment and financial infrastructure, which provides a convenient channel for the actual use of stablecoins in the future.

Despite the enthusiastic market response, the prospects of the Kaia stablecoin project remain uncertain. Issues of monetary sovereignty and compliance with anti-money laundering regulations still need to be addressed, and the issuance and redemption mechanisms of the stablecoin also require validation. Furthermore, there are several potential competitors targeting this market. Recently, several large banks in South Korea publicly announced plans to jointly issue stablecoins.

Therefore, while Kaia's stablecoin plan has generated much anticipation, it still faces numerous challenges in obtaining regulatory approval and being successfully implemented.

Kaia Public Chain: A Blockchain Network for Asia

Kaia public chain is a large blockchain network primarily aimed at the Asian region, formed by the merger of two well-known background chains, 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.

Leveraging the distribution capability of over 250 million users from two major social platforms, Kaia, positioned as a high-performance and user-friendly public blockchain, has always been regarded as a potential player in promoting the widespread adoption of crypto applications. This year, the Kaia Foundation has raised funds from multiple investment institutions to support ecological incubation and market promotion.

Before the merger, the two original chains had made their own contributions in the blockchain field. One chain achieved a 1,100% growth in its user base 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 merger, Kaia inherited the DeFi, gaming, NFT, payment, and other application scenarios of the two chains, realizing the complementarity of technology and users.

As an Ethereum-compatible Layer 1 public blockchain, Kaia technically adopts an optimized consensus framework. Official data shows that the Kaia network can handle up to 4,000 transactions per second, with a block generation time of just 1 second and instant transaction finality. Kaia employs a consensus mechanism aimed at enterprise and service scenarios, ensuring that once a block is produced, it is definitively confirmed, with no traditional risk of block rollback.

In terms of technical features, Kaia supports account abstraction and fee delegation, significantly simplifying the user experience; it also integrates identities 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 such as 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 Games to Financial Services

At the early stage of its launch, Kaia's user and capital indicators are at a starting point. In the rankings of total value locked (TVL) in DeFi, Kaia is approximately ranked within the top fifty globally. In terms of on-chain activity, it has been disclosed by the official source that over 40 million users have visited the Mini DApp portal. The number of wallets and trading volume have rapidly increased at the initial launch stage, but the overall level is still lower than that of mainstream public chains.

In terms of ecology, Kaia has formed 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.

To support ecological construction, Kaia has also launched a Builder Support Program. 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 program offers KAIA tokens valued at a total of $10 million, specifically for user acquisition and rewards.

In the DeFi space, Kaia has launched several 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 user base of the original platform, and its GameFi ecosystem benefits from the user groups and partner resources of two major social platforms, with some game developers starting to launch mobile games, NFT items, and other content on Kaia.

In terms of user engagement, Kaia adopts a strategy similar to other well-known projects. Through the official accounts of social applications, users can access games, social interactions, trading, and other Mini DApps within the chat interface without the need to download and install a new application. In January of this year, Kaia jointly launched the first batch of 32 Mini DApps, allowing users to create wallets, play games, claim rewards, and trade NFTs with just one click, without needing to install a separate client.

In its official strategy, Kaia is gradually expanding from the gaming sector to financial services and general applications: at the beginning of 2025, it has launched a USD stablecoin yield product in partnership, 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 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 a further expansion of Kaia's layout in the international stablecoin ecosystem. Overall, Kaia is accelerating the construction of a platform-level ecosystem, jointly promoting the use cases of "message as entry, on-chain as payment" with industry partners.