Kakao Talk-based securities services “Kakao Stock” is preparing to trade digital currencies. It means that the digital currency exchange backed up by Kakao Talk will appear. The industry thinks that it is the signal of financial companies and large businesses pushing into the digital currency market which is dominated by startups.
According to industry sources on August 24, Kakao Stock is seeking to build the exchange which deals with digital currencies. A senior official from the information and technology (IT) industry said, “Dunamu, which operates Kakao Stock, has been establishing the digital currency exchange in secret from June. It will be able to open the service as early as next month.” Kakao Stock is believed to deal with various digital currencies including the ones being widely traded around the world such as Bitcoin and Ethereum.
Unlike Bithumb and Korbit, two of the nation’s three largest digital currency exchanges which are run based on websites, Kakao Stock will make the new exchange trade Bitcoin through its application. It already allows customers to trade stocks and use the tracking service through the app so market watchers say it will be able to play a role as the digital currency exchange. However, Dunamu sticks to the cautious tone. A Dunamu official said, “It is true that we have been interested in digital currency trading services but it is too early to say that we are entering the market.”
Founded in August 2014, Kakao Stock is a stock trading and tracking app connected to Kakao Talk. The app is so popular that recently surpassed the cumulative trading volume of 20 trillion won (US$17.73 billion). Kakao Stock saw its monthly active users (MAUs) and average monthly trading volumes reach 310,000 and 1.2 trillion won (US$1.06 billion) in three years after the release, emerging as a large securities platform. Kakao and its subsidiary K Cube Ventures have become associated with Kakao Stock after investing in Dunamu at the initial phase.