MoonPay has officially launched its South Korean subsidiary, MoonPay Korea, as the crypto payments company targets the country as a hub for its wider Asian expansion.
The company officially announced its Korean operations in Seoul on September 29, outlining plans to connect its global payments and stablecoin infrastructure with local banks and financial technology providers. Its strategy covers Korean won stablecoins, cross-border remittances, payments, settlements and the global distribution of digital assets.
MoonPay is working with Woori Bank, KB Financial Group and KakaoBank on different parts of the planned infrastructure. The company also acquired an interest in Korean fintech firm Finger earlier this year as it works to connect its global digital asset infrastructure with the country’s existing financial systems.
MoonPay Targets Won Stablecoin Infrastructure
A big part of MoonPay’s Korean strategy is the potential global distribution of won-backed stablecoins.
Rather than immediately issuing its own Korean won stablecoin, MoonPay plans to provide infrastructure that can help Korean financial institutions and companies issue, distribute and use their own stablecoins.
The company said its global network could eventually allow users outside South Korea to acquire and hold won-denominated stablecoins, convert them into other currencies or digital assets, and use them for payments and settlements.
Potential use cases include international student remittances, payments by foreign visitors in South Korea, corporate payments and cross-border transactions.
MoonPay previously announced a partnership with Woori Bank in April to support the global distribution, cross-border settlement and wallet infrastructure for Korea’s emerging won-backed stablecoin market.
Woori, KB and KakaoBank Join MoonPay’s Plans
MoonPay’s latest expansion brings several major Korean financial institutions into its planned network.
Woori Bank is expected to combine its domestic won-based financial infrastructure with MoonPay’s international payment and digital asset network. The companies are also exploring business-to-business cross-border payment models.
KB Financial Group is working with MoonPay on stablecoin issuance and distribution infrastructure, wallets, on- and off-ramps, and overseas remittances. KB Kookmin Card is also examining a model that could allow foreign visitors to use digital assets at Korean merchants.
KakaoBank is exploring another cross-border remittance model. Under the proposed structure, a Korean user could initiate a remittance through the bank, while MoonPay would handle the digital asset conversion overseas and transfer the converted funds to a local bank account.
MoonPay Korea strategy director Choi Han-kyeol said the company is targeting processing times of around one hour for the proposed model.
$81M Investment in Korean Fintech Firm Supports Expansion
MoonPay’s Korean expansion follows its investment in Finger, a Korean fintech company that provides financial software and banking integrations.
In April, MoonPay joined Sungho Electronics and Seoryong Electronics in a deal worth about 110 billion Korean won, reported at roughly $81 million, to invest in Finger. MoonPay said the investment would combine its stablecoin infrastructure with Finger’s domestic financial software network.
Korean financial institutions, including Shinhan Bank, KB Kookmin Bank, and KakaoBank, use Finger’s technology. MoonPay’s investment gives the company an existing technology connection to Korea’s financial infrastructure as it builds out its local operation.
MoonPay Plans VASP Registration
MoonPay will need to meet South Korea’s regulatory requirements before launching its planned services.
The company said it will gradually expand its Korean services after getting the required licenses, registrations, and approvals, including virtual asset service provider requirements where applicable. Korean reports also indicate that MoonPay plans to seek VASP registration as it builds its local business.
This regulatory process is especially important for the company’s stablecoin plans because South Korea is still working on rules for won-denominated digital assets. Proposed digital asset laws include rules on stablecoin issuance and oversight.
MoonPay’s approach focuses on infrastructure rather than immediately issuing its own won stablecoin. The company wants to provide the technology that connects banks and other financial institutions to blockchain-based payment and settlement networks.
Korea Becomes MoonPay’s Asian Base
MoonPay said South Korea’s combination of banks, card companies, digital platforms and blockchain infrastructure makes it suitable for testing financial services that could later be adapted for other Asian markets.
The company plans to localize its services with Korean partners, connect them to domestic financial systems and test customer-facing models before expanding similar services elsewhere in Asia.
MoonPay reported more than $45 billion in cumulative transaction volume and over 32 million verified users, while saying it has worked with more than 1,500 onboarding and transaction partners during the past 12 months.
The company is also developing infrastructure for stablecoin conversion, wallets, payments and other onchain financial services outside Korea.
What Comes Next
MoonPay Korea will now work with Korean financial institutions on localizing its payment and digital asset infrastructure while preparing for the regulatory requirements needed to expand its services.
The company’s longer-term plan is to connect potential Korean won stablecoins with international payment and settlement networks, giving Korean banks and businesses access to MoonPay’s global digital asset infrastructure.
What this means for you: MoonPay’s South Korean launch is primarily an infrastructure and payments expansion. If local regulations allow won-backed stablecoins to develop, MoonPay aims to help Korean financial institutions distribute and use them across domestic and international payment networks.
