Kaia Public Chain Layout Stablecoin Ecosystem, Targeting Hundreds of Millions of Users in Asia

Recently, the Kaia public chain has become the focus of the crypto market due to its strong token price surge. Since its launch in August 2024, Kaia has been continuously working on technical performance and ecological construction. Recently, Kaia's 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," hinting that its fiat-pegged token plan is about to enter the implementation phase.

With the new South Korean government's stance supporting the issuance of a stablecoin pegged to the Korean won, the Kaia team announced plans to launch a Korean won stablecoin in collaboration with several super apps. This news has led to a significant rise in the prices of related concept stocks, and the price of Kaia tokens has increased from nearly $0.10 to a high of $0.17, reflecting the market's optimism about the prospects of domestic stablecoin projects in South Korea.

Kaia Stablecoin Project Under the Favorable Korean Policies

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 the announcement, the prices of related concept stocks surged, and the market is filled with expectations for the Korean won stablecoin.

The Korean won stablecoin project proposed by Kaia is being 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, the relevant parties are also widely regarded as potential beneficiaries of the local stablecoin.

The current South Korean government is formulating the "Basic Law on Digital Assets" and actively discussing a regulatory framework that allows private institutions to issue stablecoins. The draft bill aims to permit non-bank institutions and payment service providers to issue stablecoins and relax the rules for cryptocurrency exchanges. Under this proposed framework, the approval authority for stablecoin issuers will be assigned to 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 authority to issue legal tender belongs to the central bank, and private institutions face legal obstacles in issuing fiat-backed 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 Korean 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 legal provisions for the legalization of stablecoins in the "Basic Law." The group that Kaia relies on has large-scale payment and financial infrastructure, which provides a convenient channel for the practical use of stablecoins in the future.

However, under the enthusiastic feedback from the market, the prospects of the Kaia stablecoin project remain unclear. On one hand, issues related to currency sovereignty and anti-money laundering compliance are still difficult to overcome; on the other hand, the issuance and redemption mechanisms of the stablecoin itself need to be validated, and it also faces multiple potential competitors. Several large banks in South Korea have publicly announced plans for a joint issuance of stablecoins.

Therefore, the advancement of Kaia's stablecoin plan in the context of policy opportunities has sparked many speculations, but whether it can obtain regulatory approval and be smoothly implemented still faces many uncertainties.

Social giants join forces to cover 250 million potential users

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

The two major social media platforms have a wide user base in South Korea and Japan, respectively. One of them has a penetration rate of nearly 95% in South Korea, with about 50 million monthly active users; the other covers 70% of the population in Japan and dominates markets such as Thailand and Taiwan. Based on the distribution capability of over 250 million users from these two social media platforms, Kaia, positioned as a high-performance and user-friendly public chain, has 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 investment institutions to support ecological incubation and market promotion.

Before merging into Kaia, the two chains achieved significant results in their respective fields. One chain's user base grew by 1,100% in 2023, reaching 873,000; the other chain provided an NFT platform within its parent company, accumulating over 5.6 million users and completing approximately 560,000 NFT transactions. After the merger, 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 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 fast 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 only 1 second and instant transaction finality. Unlike conventional PoW/PoS, Kaia adopts a BFT consensus aimed at enterprise and service scenarios, ensuring that blocks are finalized as soon as they are produced, eliminating the traditional risk of block rollback. Kaia network nodes are divided into consensus nodes, proxy nodes, and endpoint nodes, with consensus nodes managed by core operators responsible for block generation and verification. The network design ensures that over 50 nodes can participate in consensus, balancing throughput and decentralization.

In terms of technical features, Kaia supports account abstraction and fee delegation, significantly simplifying the user experience; at the same time, it integrates identities and payment channels from two major social platforms, allowing ordinary users to use on-chain services without additional registration. Kaia also maintains compatibility equivalent to EVM chains like Ethereum and plans to support CosmWasm smart contracts; its industry-leading cross-chain bridge integration capability provides developers with flexible multi-chain interoperability. It is worth mentioning that the Kaia mainnet is actually a hard fork of the original chain, and all states are automatically inherited to the Kaia chain after the merger.

Expand from the gaming sector to financial services

When Kaia first launched, user and capital indicators were still in the preliminary stage. By mid-2025, Kaia ranked around the top fifty globally in DeFi TVL, reflecting the scale of its initial stage ecosystem. In terms of on-chain activity, Kaia's official sources have disclosed that over 40 million users have accessed the Mini DApp portal. The number of wallets and transaction volume grew rapidly in the early stages of the 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 chains, forming a comprehensive ecosystem covering multiple fields such as DeFi, NFT, GameFi, and Real World Assets (RWA). According to official statistics, there are already over 420 decentralized applications and game services that have been or are planned to be launched on the Kaia network after the merger.

In addition, with the launch of the Kaia mainnet, the stakeholders have jointly introduced 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. According to official documents, the Kaia Wave program will provide a total value of 10 million USD in KAIA tokens, 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 beginning to launch mobile games, NFT items, and other content on Kaia.

In terms of distribution and user reach for Mini DApps, the Dapp Portal is one of the main tools for the development of the Kaia ecosystem. The Dapp Portal is based on the Kaia chain and is accessible to users through official accounts on social media platforms, without the need to download or install any new applications, allowing access to games, social interactions, trading, and other Mini DApps directly within the chat interface. In January of this year, relevant parties jointly launched the first batch of 32 Mini DApps, enabling users to create wallets, play games, claim rewards, trade NFTs, and more, all without having to install a separate client.

Officially, 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 social platforms, 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 of this year, Tether officially deployed its USDT stablecoin on Kaia, providing stablecoin payment and cross-border transfer services to nearly 200 million users, marking Kaia's further expansion in the international stablecoin ecosystem. Overall, Kaia is accelerating the construction of a platform-level ecosystem, collaborating with industry partners to promote the use case of "message as entry, on-chain as payment."