Kaia Public Chain: Can the Stablecoin Plan Propel It into a New Stage?

Recently, the Kaia public chain has become one of the hot topics in the cryptocurrency market due to the strong performance of its token price. Since its official launch in August 2024, Kaia has been committed to enhancing technical performance and improving its ecosystem. Recently, its actions in the stablecoin and payment sectors have sparked widespread discussions among industry investors. Senior officials of the foundation stated, "Kaia's stablecoin summer is approaching," which suggests that its fiat-pegged token plan may soon be implemented.

With the new government taking office, the issuance of stablecoins pegged to the Korean won has become a new policy direction for South Korea. The Kaia team has taken this opportunity to announce collaborations with several well-known technology companies, planning to launch a Korean won stablecoin. Following this announcement, the stock prices of related companies surged, and the price of the Kaia token soared from around $0.10 to a peak of $0.17, reflecting the market's optimistic expectations for the prospects of local stablecoin projects in South Korea.

Borrowing the Policy Tailwind, Kaia Stablecoin Project Launched

After the new South Korean government proposed policies to support the local stablecoin in 2025, Kaia quickly responded and announced plans to launch a Korean won stablecoin. Following the release of this news, 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 several well-known technology companies and is currently still in the planning stage, with no specific issuance timetable. With its digital wallet infrastructure and QR code payment system, the related companies are widely regarded as potential beneficiaries of the local stablecoin.

Currently, the South Korean government is formulating the "Digital Assets Basic Act" 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 taken over by the Financial Services Commission. The bill also significantly lowers regulatory thresholds, reducing the issuer's capital requirement from the previously proposed 5 billion won to 500 million won.

However, according to the South Korean Constitution, the right to issue legal currency 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 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 Asset Committee of the ruling party in South Korea stated that they would support private issuance and plan 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.

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 itself also need to be validated, while facing multiple potential competitors. Recently, several large banks in South Korea have also announced plans to jointly issue stablecoins.

Therefore, although Kaia's stablecoin project was launched amid policy opportunities, it still faces many challenges in obtaining regulatory approval and successful implementation.

Social Giants Join Forces, With 250 Million Potential Users

The Kaia public chain is a large blockchain network primarily aimed at the Asian region, formed by the merger of two well-known blockchain projects, and is officially set to launch 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 total of over 250 million users. With this massive user base, Kaia, positioned as a high-performance and user-friendly public blockchain, has been regarded as a potential player in promoting the adoption of crypto applications. This year, the Kaia Foundation has raised funds from several well-known investment institutions to support ecological incubation and market promotion.

Before the two projects merged into Kaia, they each achieved significant results. One project realized an astonishing 1,100% growth in users in 2023, reaching 873,000; the other project provided an internal NFT platform with a total of over 5.6 million users, completing approximately 560,000 NFT transactions. After the merger, Kaia inherited the advantages of both projects, including application scenarios such as DeFi, gaming, NFTs, and payments, 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 an Ethereum-compatible Layer 1 public chain, Kaia technically adopts an optimized IBFT consensus framework. Its consensus algorithm is based on the optimized Istanbul BFT, allowing for 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 finally confirmed, eliminating the traditional risk of block rollback. The Kaia network nodes are divided into consensus nodes (CN), proxy nodes (PN), and endpoint nodes (EN), with consensus nodes managed by core operating operators (CCO), responsible for block generation and validation. The network design ensures that more than 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 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 actually a hard fork of the original project's mainnet, with all states automatically inherited by the Kaia chain after the merge.

Expanding from the gaming sector to financial services

When Kaia first launched, user and fund metrics were still in the preliminary stages. By mid-2025, Kaia ranked among the top fifty globally in the DeFi TVL rankings, reflecting the scale of its ecosystem at the start phase. In terms of on-chain activity, Kaia's official sources disclosed that over 40 million users had visited the Mini DApp portal. The number of wallets and transaction volume grew rapidly in the early stages post-launch, but the overall level remains 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 existing 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 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, a builder support program called Kaia Wave has also been introduced. This program aims to provide multi-faceted support to 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 multiple 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 project, 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 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 reach. The Dapp Portal is built on the Kaia chain and is accessible to users through the official accounts of social applications, allowing them to access 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, enabling users to create wallets, play games, claim rewards, and trade NFTs with just one click, without needing to install a separate client.

In terms of official strategy, Kaia is gradually expanding from the gaming sector to financial services and general applications: at the beginning of 2025, it has 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 enabling 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 further expansion of Kaia's layout 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."