Can the Kaia Public Chain Explore the Stablecoin Market and Lead a New Wave of Development?

Recently, the Kaia public chain has become one of the hotspots in the crypto market due to the significant rise in its token price. Since its official launch in August 2024, Kaia has been dedicated to enhancing its technical performance and完善生态系统. Recently, the project's movements in the stablecoin and payment fields have attracted widespread attention from industry investors. Senior officials of the foundation publicly stated, "The era of Kaia's stablecoin is coming soon," suggesting that its fiat-backed token plan is entering the implementation phase.

With the new government taking office, supporting the issuance of stablecoins pegged to the local currency has become the latest policy direction in South Korea. The Kaia team has also announced that it will collaborate with several well-known technology companies to launch a Korean Won stablecoin. Upon the announcement of this news, the stock prices of related companies surged significantly, and the price of Kaia tokens soared from about $0.10 to a peak of $0.17, reflecting the market's high expectations for the prospects of local stablecoin projects in South Korea.

With the support of favorable policies, the Kaia stablecoin project is launched.

After the new South Korean government proposed a policy to support the local currency stablecoin in 2025, Kaia quickly responded and announced the Korean won stablecoin plan. After this news was released, the stock prices of related concept stocks surged, and the market showed a strong interest in the Korean won stablecoin.

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

Currently, the South Korean government is formulating the "Basic Law on Digital Assets" and actively exploring a regulatory framework that allows private institutions to issue stablecoins. The draft bill aims to relax the rules for cryptocurrency exchanges, enabling them to participate in lending and autonomously choose the tokens they list. According to this proposed framework, the approval authority for stablecoin issuers will be under the Financial Services Commission. The bill also significantly lowers the regulatory thresholds, reducing the capital requirements for issuers from the previously proposed 5 billion KRW to 500 million KRW.

However, according to South Korea's constitution, the right to issue fiat currencies belongs to the central bank, and private institutions face legal obstacles to issuing fiat-pegged tokens. The Bank of Korea (BOK) has expressed concern about these proposals, arguing that the indiscriminate issuance of won-denominated stablecoins could lead to a "currency run" that could affect the competitiveness of the won.

In terms of 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 legalization of stablecoins in the "Basic Law." The technology group that Kaia relies on has a large-scale payment and financial infrastructure, which provides a convenient channel for the practical use of stablecoins in the future.

However, amid the overwhelming response from the market, there is still uncertainty about the future of the Kaia stablecoin project. On the one hand, monetary sovereignty and anti-money laundering compliance issues still need to be addressed. On the other hand, the issuance and redemption mechanism of stablecoins also needs to be verified. In addition, there are several potential competitors targeting this market as well. Recently, a number of large banks in South Korea have publicly announced plans to jointly issue stablecoins.

Therefore, although Kaia's stablecoin plan has sparked a lot of expectations in the policy opportunities, there are still many challenges in whether it can obtain regulatory approval and successfully land.

Social giants join forces, with 250 million potential users

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

These two social platforms dominate their respective markets, boasting a large number of monthly active users. Based on the distribution capability of over 250 million users accumulated by the two major social platforms, Kaia, positioned as a high-performance and user-friendly public blockchain, has always been regarded as one of the "potential stocks" to promote the popularization of crypto applications. This year, the Kaia Foundation has raised external funds from several well-known investment institutions to support ecological incubation and market promotion.

Before the two companies merged to form Kaia, each of their blockchain projects had achieved significant results. One project realized a 1,100% increase in users in 2023, reaching 873,000; the other project provided NFT platform services, with a total of over 5.6 million users and completing approximately 560,000 NFT transactions. After the merger, Kaia inherited the ecosystems and application scenarios of both projects to achieve technological and user complementarity. The official vision emphasizes that Kaia will "put Web3 at the fingertips of hundreds of millions of users in Asia" and create an efficient platform to support the development of large-scale decentralized applications.

As an Ethereum-compatible Layer 1 public chain, Kaia technically inherits and optimizes the IBFT 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 just 1 second and instant transaction finality. Unlike conventional PoW/PoS, Kaia adopts a BFT consensus geared towards enterprise and service scenarios, ensuring that once a block is produced, it is final and carries no traditional risk of block rollback. Kaia network nodes are divided into consensus nodes (CN), proxy nodes (PN), and endpoint nodes (EN), with consensus nodes managed by core operators (CCO), responsible for block generation and verification. The network design ensures that over 50 nodes can participate in the consensus, balancing throughput and decentralization.

In terms of technical features, Kaia supports functions such as account abstraction and fee delegation, greatly 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 equivalence compatibility with EVM chains like Ethereum and plans to support CosmWasm smart contracts; its industry-leading cross-chain bridge integration capabilities provide developers with flexible multi-chain interoperability. It is worth mentioning that the Kaia mainnet is actually a hard fork of the original blockchain, with all states automatically inherited to the Kaia chain after the merge.

Expanding from the gaming sector to financial services

When Kaia was just launched, user and funding indicators were still in the preliminary stage. By mid-2025, Kaia ranked around the top fifty globally in terms of DeFi TVL, reflecting the scale of its ecological starting phase. In terms of on-chain activity, Kaia's official sources have disclosed that over 40 million users have visited the Mini DApp portal. The number of wallets and transaction volume grew rapidly in the initial stage after launch, but the overall level is still far below that of mature mainstream public chains like Ethereum, Solana, and BNB.

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

In addition, alongside the launch of the Kaia mainnet, a builder support program called Kaia Wave was 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 provide a total of $10 million worth of KAIA tokens, specifically for user acquisition and rewards.

In the DeFi field, Kaia has launched a number of decentralized exchanges, staking, and lending projects, and also supports infrastructure such as stablecoins and cross-chain bridges at the platform level. In terms of NFT, Kaia has inherited the user base of the existing NFT platform, and its GameFi ecosystem has benefited from the user base and partner resources of the two major social platforms, and some game manufacturers have begun to launch mobile games, NFT props and other content on Kaia.

Following other well-known projects, 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 built on the Kaia chain and is accessible to users through the official accounts on social platforms, allowing access to 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, allowing users to create wallets, play games, claim rewards, trade NFTs, and more, all without the need for an additional client.

In terms of official strategy, Kaia is gradually expanding from the gaming field to financial services and general applications: in early 2025, it has released a US dollar stablecoin yield product, and the subsequent plans include the introduction of DeFi protocols such as lending, perpetual contracts, payments, and asset tokenization, as well as the realization of seamless exchange between KRW and stablecoins.

In May this year, a well-known stablecoin project 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 and working with industry partners to promote the use case of "message as entry and on-chain payment".