Kakao Looks To Singapore In Blockchain Expansion Plans
Last updated on November 1st, 2022 at 11:17 am
Korean internet giant Kakao, plans to expand its offerings into Asia by expanding into Singapore. This will place in Singapore aiding Kakao to achieve its plans for globalization through Klatyn, its renowned blockchain platform.
A recent publication by Korea Herald stated that the internet firm planned to launch two firms based on blockchain. The two new firms, Krust and Klatyn Foundation, would set the center stage for expansion.
Krust will serve to boost the adoption of blockchain technology around the world. On the other hand, the Klatyn Foundation will be a non-profit entity.
According to Kakao, the objective behind launching the two firms was to boost the reach of the Klatyn blockchain into Singapore. The firm also added that the role of the Kakao foundation was to expand the reach of the Klatyn network strategically.
In early August, the Kakao Foundation also stated that
“We will actively invest our human as well as financial resources in developers and businesses of the blockchain world to accelerate the growth of our ecosystem and the development of our technology.”
The expansion of Kakao into Singapore would be made possible by the $330 Million development fund. The fund is also constituted of an improvement reserve fund used to maintain the blockchain services.
South Korean companies have increased their adoption of blockchain technology, and Kakao has not been left behind in this move.
In December 2019, the KT Corporation announced that it would be launching a digital currency project. The news caused a buzz in other conglomerates, as others followed shortly after and leading firms in South Korea ventured into ventures based on blockchain.
Kakao Ventures into CBDCs
Kakao was among the major conglomerates in South Korea that submitted bids to help with the country’s central bank digital currency project (CBDC).
In April, the firm partnered with ConsenSys, a blockchain development firm, where the latter was involved in creating a private version of the Klatyn network. This development was aimed at giving the network a chance at being chosen for CBDC issuance.
South Korea has been making significant developments in its plans to launch a central bank digital currency. The Bank of Korea is expected to choose a technology firm that will aid in the CBDC pilot project towards the end of August.
Kakao has proactively positioned itself as the best choice for the pilot phase.
The firm has partnered with 32 local and foreign firms that form the Klatyn Governance Council. This sheds a positive light on the firm’s strong stand on corporate governance.
Kakao is also making these moves to remain competitive in the Asian region. The region is home to many conglomerates; hence Kakao needs to remain proactive through strategic advancements.
One of the major competitors of Kakao is Nave, which is also expanding its blockchain project. Naver’s expansions are not only focused on Japan but also in Southeast Asia. The two firms have made commendable progress in their blockchain expansion plans in the region.
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