Kaia DLT Foundation has announced plans to formally enable the issuance and circulation of a won-based stablecoin on its network infrastructure in the first half of 2027.
The initiative follows the completion of a proof-of-concept (PoC) focused on cross-border remittances, conducted in collaboration with major commercial banks and partners including Lambda256, AhnLab Blockchain Company, and OpenAsset.
The PoC demonstrated significant efficiency gains compared to traditional remittance systems.
“When sending money overseas through the commercial bank remittance system based on SWIFT, settlement takes one to three business days and fees are about 9,600 won,”
said Seo Sang-min, Chair of Kaia DLT Foundation.
“Using the Kaia network, processing takes less than three minutes and the expense drops to under 1,250 won. It verified that SWIFT’s inefficient intermediary structure can be replaced with blockchain.”
Kaia plans to conduct a pilot in the second half of this year, with a view to validating settlement stability at scale and implementing the ISO 20022 messaging standard, according to Chosunbiz.
The Foundation also aims to build a direct exchange system linking the Korean won with other Asian stablecoins, reducing reliance on the US dollar for intermediate settlement.
Formed through the integration of Klaytn and Finschia blockchains, Kaia operates independently as a non-profit entity based in Abu Dhabi.
The Foundation is positioning its stablecoin strategy as a shift from earlier mini dapp initiatives towards financial use cases, particularly cross-border payments.
“Southeast Asia is a key focus due to its growing demand for remittances and openness to digital financial infrastructure,”
Seo said.
Discussions are underway with regional stablecoin projects, including those linked to Indonesia, Malaysia, and Japan.
Featured image credit: Edited by Fintech News Hong Kong, based on image by tahantanha10 via Freepik