Bitcoin Holds at $60K; Kakao Officially Pursues Stablecoin Business

Bitcoin is currently trading sideways between $62,000 and $63,000, opening slightly lower. In Korean won, that is just over about 99 million won. This marks a continued decline from the May peak of 120 million won, reflecting a stagnant mood across the market.

Bithumb swung to a 108.7 billion won net loss in the first half. Both exchanges saw the valuation of their held coins fall by more than 40% and 30%, respectively, indicating serious financial deterioration.

As large sums flow into AI-related sectors, a perception has spread that little money is left to invest in crypto. As a result, the investment appeal of crypto assets appears to have fallen relative to Korean equities.

The crypto slump is translating into lower trading volume. Upbit's average daily trading value fell 76% in about six months, from 2.689 trillion won in February to roughly 650 billion won in August. Customer deposits also left the exchange by 36%, deepening its liquidity problems.

As trading volume plunged, profits have been shrinking far faster than revenue, creating a double blow. Because fixed costs keep running even when trading slows, profitability has deteriorated sharply.

While the spot market has stalled, derivative crypto trading volume has surged. Derivatives volume rose from $15 billion in April to $50 billion in July, a 17-fold jump in just three months. Binance leads the market with 76% of total volume, and top assets are concentrated in AI semiconductor leveraged ETFs such as SK Hynix and Micron.

Domestic exchanges such as Upbit and Bithumb operate mainly on spot trading, while overseas exchanges offer a wide range of derivative products, a gap that shows clearly in trading volume. This raises the need for domestic exchanges to diversify revenue sources and introduce new trading products. Analysts argue that the limits of spot trading are weakening the competitiveness of domestic exchanges.

In a corrected business report, Kakao added 'other information service business' to its business purpose and explicitly cited 'collaboration and promotion of new information services such as stablecoins' as the reason. This is interpreted as Kakao officially entering the stablecoin business. Kakao is believed to aim to revitalize its 'wallet economy' through links with its financial affiliates.

Kakao has said it has not committed large capital to the stablecoin push or set a specific payback period. Instead, it plans to proceed centered on collaboration with affiliates and system integration. With legislation still lacking, it appears to be seeking a phased approach, and its market entry alone is seen as carrying significant symbolic weight for the crypto industry.

Last week, the White House held a closed-door meeting with executives from digital asset exchanges and prediction platforms. Contrary to early reports, a prediction market company was reportedly excluded from the invitation list. The core agenda is expected to be the 'FIT21' bill, with the meeting seen as aimed at discussing key issues ahead of a floor vote scheduled for September.

U.S. government discussions on crypto regulation are expected to center on the 'FIT21' bill. The bill failed to pass before the August recess and will be put to a vote in September. Key open issues include conflict-of-interest concerns for public officials (citing the case of President Trump) and worries that interest payments on stablecoins could drive deposit outflows from regional banks. Attention is also turning to shifts in U.S. regulatory direction, including a CFTC innovation advisory committee meeting scheduled for tomorrow.