Kakao forms new blockchain entities in Singapore

South Korean tech giant Kakao has formed two blockchain-based entities dubbed the “Klatyn Foundation” and “Krust” in Singapore.

Krust will act as Kakao’s overseas base for its blockchain business and will be responsible for discovering new blockchain business ideas and services, using Kakao’s blockchain platform Klaytn.

Krust is also expected to invest in new blockchain start-ups at home and abroad that the company finds promising and “profitable”.

According to a report in the Korea Herald, the company stated it had set up a $300 million Klaytn Growth Fund and will invest in start-ups later this year to widen the Klaytn ecosystem on the global level.

“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,” it said.

Global blockchain growth

Krust will be headed by Song Ji-ho, head of Kakao Community Growth Center; Kang Joon-yeol, former chief strategy officer of Kakao; and Shin Jeong-hwan, former vice president at Kakao.

Kakao, like other major South Korean conglomerates, has shown great interest in blockchain technology. Singapore-based Klaytn Foundation has been focused on global growth.

“Ground X will continue contributing to the Klaytn ecosystem, together with Krust, a newly established global accelerator unit of Kakao, led by Dean Song, by working with the Foundation to help accelerate its mission,” said the official announcement.

Kakao recently won the Bank of Korea central bank digital (CBDC) currency tender. The company will work with other subsidiaries – Kakao Pay and Kakao Bank – on the CBDC simulation for a digital Won with a budget of up to 4.96 billion ($4.4 million).