Kaia Public Chain: The Stablecoin Ambition of Asia's Web3 Giants

Recently, the Kaia public chain has become a hotspot in the crypto market due to its strong token growth. Since its launch in August 2024, Kaia has been continuously making efforts in technical performance and ecological construction. Recently, its actions in stablecoins and payment scenarios have sparked widespread discussion among industry investors. Senior officials from the foundation stated, "The summer of Kaia's stablecoin is coming soon," indicating that its fiat-pegged coin plan is entering the implementation phase.

With the new government in power, the support for the issuance of stablecoins pegged to the local currency has become South Korea's latest policy direction. The Kaia team subsequently announced its plan to launch a Korean won stablecoin in collaboration with several super applications. This news has significantly boosted the stock prices of related concept stocks, and the price of the Kaia token has risen from about $0.10 to a maximum of $0.17, reflecting the market's optimism regarding the prospects of local stablecoin projects in South Korea.

Borrowing the Policy Wind, the Kaia stablecoin Project Launches

In 2025, after the new South Korean government proposed a policy to support the local currency stablecoin, Kaia quickly responded and announced the Korean won stablecoin plan. This news sparked heated discussions in the market, with related concept stocks soaring, showing that the market is full of 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 clear issuance timetable yet. With its digital wallet infrastructure and QR code payment system, the related companies are seen as potential beneficiaries of the local stablecoin.

The current South Korean government is formulating the "Basic Law on Digital Assets" and discussing a regulatory framework that allows private institutions to issue stablecoins. The bill aims to relax the rules for cryptocurrency exchanges, permitting non-bank institutions and payment service providers to issue stablecoins. According to the proposed framework, the approval authority for stablecoin issuers will be under the Financial Services Commission. The bill also significantly lowers regulatory thresholds, reducing the capital requirement for issuers from 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-backed 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" and affect the competitiveness of the won.

In terms of policy inclination, the head of the Digital Asset Committee of the ruling party in South Korea stated that they will support private issuance and plan to clearly outline stablecoin legalization provisions in the "Basic Law". The group that Kaia relies on itself possesses large-scale payment and financial infrastructure, providing a convenient channel for the practical use of future stablecoins.

Despite the enthusiastic market response, the prospects of the Kaia stablecoin project remain uncertain. On one hand, issues related to currency sovereignty and anti-money laundering compliance still need to be addressed; on the other hand, the issuance and redemption mechanisms of the stablecoin need to be verified and face multiple potential competitors. Recently, several large banks in South Korea have also announced plans to jointly issue stablecoins.

Therefore, while Kaia's stablecoin plan has sparked a lot of anticipation, it still faces many challenges in obtaining regulatory approval and successfully landing.

Social giants join forces, potential user base is huge

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

The two major social platforms behind Kaia dominate their respective markets, with a cumulative distribution capability of over 250 million users. Positioned as a high-performance, easy-to-use public blockchain, Kaia has been regarded as one of the "potential stocks" that promote the popularization of crypto applications. This year, the Kaia Foundation has raised external funds from multiple investment institutions to support ecological incubation and market promotion.

Before merging into Kaia, both original chains had impressive performances. One of the chains saw an astonishing growth of 1,100% in its user base in 2023, reaching 873,000; the other chain internally provided an NFT platform, accumulating over 5.6 million users and completing approximately 560,000 NFT transactions. After the merger, Kaia inherits the ecological advantages of both chains to achieve the 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 build 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 once a block is generated, it is definitively confirmed, eliminating the traditional risk of block rollback. Kaia network nodes are divided into consensus nodes, proxy nodes, and endpoint nodes. The consensus nodes are 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, greatly simplifying the user experience; it also integrates identities and payment channels from mainstream social platforms, allowing ordinary users to access on-chain services without the need for additional registration. Kaia 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 original chain, with all states automatically inherited to the Kaia chain after the merger.

Expanding from the gaming sector to financial services

When Kaia first launched, user and funding metrics were still in the preliminary stage. By mid-2025, Kaia was ranked around the top fifty globally in DeFi TVL, reflecting the scale of its ecosystem at the early stage. In terms of on-chain activity, Kaia's official sources disclosed that over 40 million users have accessed the Mini DApp portal. The number of wallets and transaction volumes grew rapidly in the early stages of the launch, but overall levels remained far below those of mature mainstream public chains like Ethereum, Solana, and BNB.

Ecologically, Kaia merges the application ecosystems of two original 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, at the same time as the launch of the Kaia mainnet, the relevant parties also jointly launched 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 sources such as social platforms, Web3 marketing alliances, creators, and Kaia's vertical services. According to official documents, the Kaia Wave program will provide KAIA tokens valued at a total of 10 million dollars, specifically for user acquisition and rewards.

In the DeFi sector, Kaia has launched multiple decentralized exchanges as well as staking and lending projects. The platform also supports basic infrastructures such as stablecoins and cross-chain bridges. In terms of NFTs, Kaia inherits the existing user base of the original platform, and its GameFi ecosystem benefits from the user groups and partner resources of two major social platforms. Some game developers have begun to launch mobile games, NFT items, and other content on Kaia.

Inspired by Telegram and the Ton 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 engagement. The Dapp Portal is built on the Kaia chain and is accessible to users through the official accounts on social platforms, allowing them to access games, social interactions, transactions, and other Mini DApps within the chat interface without the need to download and install any new applications. 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, and trade NFTs with just one click, without the need for a separate client.

Officially, 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, 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 usage scenario of "message as entry, on-chain as payment."