Can the Kaia public chain make a strong push for stablecoin and payment scenarios, and step into the "stablecoin summer"?

Recently, the Kaia public chain has become one of the focal points in the crypto market due to its strong token growth. Since its launch in August 2024, Kaia has been making a strong push in terms of technical performance and ecosystem development. Recently, its actions in the stablecoin and payment sectors have sparked heated discussions among industry investors. Senior officials from the foundation publicly stated, "Kaia's stablecoin summer is coming soon," hinting that its fiat-pegged coin plan is gradually being implemented.

After the new government took office in South Korea, supporting the issuance of a stablecoin pegged to the Korean won has become a new policy direction. The Kaia team immediately announced plans to collaborate with several super applications to launch a Korean won stablecoin. Once this news was announced, the prices of related concept stocks surged significantly, and the Kaia token rose from nearly $0.10 to a high of $0.17, reflecting the market's optimistic expectations for the prospects of locally issued stablecoin projects in South Korea.

Kaia Stablecoin Project Under the Favorable Policy Wind

After the new South Korean government proposed a policy to support the local stablecoin in 2025, Kaia responded quickly and announced the Korean won stablecoin plan. This news triggered a strong market reaction, with related concept stock prices soaring, demonstrating the market's high expectations for the Korean won stablecoin.

The Korean won stablecoin project proposed by Kaia is jointly promoted by several well-known enterprises and is currently still in the planning stage, with no specific issuance time determined yet. With its digital wallet infrastructure and QR code payment system, some partners are 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 ease the rules for cryptocurrency exchanges and permit non-bank institutions and payment service providers to issue stablecoins. According to this proposed framework, the approval authority for stablecoin issuers will be 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 currency 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 indiscriminate issuance of stablecoins denominated in Korean won could lead to "currency runs," thereby affecting 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 they would support private issuance and plan to clarify the legalization of stablecoin in the "Fundamental Law". The partners that Kaia relies on possess large-scale payment and financial infrastructure, providing a convenient channel for the actual use of stablecoins in the future.

Despite the enthusiastic market reaction, the prospects of the Kaia stablecoin project still face uncertainties. Issues related to currency sovereignty and compliance with anti-money laundering are difficult to overcome, and the issuance and redemption mechanisms of the stablecoin also need to be verified. In addition, several potential competitors are targeting this market. During the South Korean central bank's experiments with tokenized deposits and wholesale central bank digital currency (CBDC), several large banks publicly announced plans to jointly issue stablecoins.

Therefore, although Kaia's stablecoin plan has sparked numerous imaginations amid policy opportunities, whether it can obtain regulatory approval and be smoothly implemented still faces many challenges.

Kaia Blockchain: Social Giants Join Forces, Possessing 250 Million Potential Users

The Kaia public chain is a large blockchain network primarily targeted 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 applications.

These two social platforms dominate their respective markets, with a cumulative distribution capability of over 250 million users. Positioned as a high-performance, user-friendly public chain, Kaia has long been regarded as one of the "potential stocks" that promote the popularization of cryptocurrency applications. This year, the Kaia Foundation has raised external funding from several investment organizations to support ecosystem incubation and market promotion.

Before merging into Kaia, the two original projects achieved significant results in their respective fields. One of the projects was an important representative of the South Korean blockchain network, with its user base experiencing an astonishing growth of 1,100% in 2023, reaching 873,000; the other project was launched in 2022 and provided an NFT platform within its ecosystem, accumulating over 5.6 million users and completing around 560,000 NFT transactions. After the merger, Kaia inherited the DeFi, gaming, NFT, payment, and other application scenarios of the two projects, achieving a complementarity of technology and users. 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 a Layer 1 public chain compatible with Ethereum, Kaia technically inherits and optimizes the consensus framework of its predecessor. Its consensus algorithm is based on an optimized Istanbul BFT, allowing for quick 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 certainty. Unlike conventional PoW/PoS, Kaia adopts a BFT consensus tailored for enterprise and service scenarios, ensuring that once a block is produced, it is definitively confirmed, with no traditional block rollback risk. 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 validation. The network design ensures that over 50 nodes can participate in 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; at the same time, it integrates identities and payment channels from mainstream social platforms, allowing ordinary users to access 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. It is worth mentioning that the Kaia mainnet is essentially a hard fork of the existing mainnet, and all states are automatically inherited to the Kaia chain after the merge.

Expanding from the gaming sector to financial services

When Kaia was first launched, user and funding indicators were still in the preliminary stage. By mid-2025, Kaia was ranked around the top fifty globally in terms of DeFi TVL, reflecting the scale of its early-stage ecosystem. In terms of on-chain activity, Kaia's official data revealed that over 40 million users have accessed the Mini DApp portal. The number of wallets and transaction volume grew rapidly in the early stages after launch, but the overall level is still far below that of mature mainstream public chains such as Ethereum, Solana, and BNB.

In terms of ecology, Kaia has merged the application ecosystems of two original projects, 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, alongside the launch of the Kaia mainnet, the partners 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 various channels. According to official documents, the Kaia Wave program will provide a total value of $10 million worth of KAIA tokens, specifically designated for user acquisition and rewards.

In the DeFi sector, Kaia has launched multiple decentralized exchanges and staking, lending projects, while the platform also supports stablecoin, cross-chain bridges, and other infrastructure; in terms of NFTs, Kaia has inherited the existing platform's user base, 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.

Following the cooperation model between well-known social platforms and blockchain, 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 based on the Kaia chain and is accessible to users through the official accounts of 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, partners 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 needing to install a separate client.

In its official strategy, Kaia is gradually expanding from the gaming sector to financial services and general applications: by early 2025, it had launched a USD stablecoin yield product on social platforms, with subsequent 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, a well-known stablecoin issuing institution officially deployed its US dollar 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 point, on-chain as payment" in collaboration with industry partners.