KAIA: Two Asian Super-App Giants Merged Their Blockchains to Create the "TON of Asia" – And It Might Actually Work
By BCGamer —
Tags: kaia
What happens when South Korea's most dominant messaging app and Japan's most dominant messaging app both have blockchains, realize they're competing for the same users, and decide to just... merge?
You get Kaia.
250+ million potential users. Two tech giants that own the digital lives of their respective countries. And a blockchain strategy that's essentially "what if Telegram did TON, but in Asia, times two."
Let's talk about how two separate corporate blockchain experiments became one unified bet on Asia's Web3 future.
The Players: Kakao and LINE
Before we get to Kaia, you need to understand how big Kakao and LINE actually are.
KakaoTalk (South Korea):
49 million monthly active users
Used by ~95% of South Korea's population
People open it 50+ times per day
Owns KakaoPay, Kakao T (ride-hailing), KakaoBank
It's not just a messenger – it's the operating system for Korean digital life
LINE (Japan + Southeast Asia):
196 million monthly active users
Dominates Japan (96 million users), Taiwan (92% weekly usage), Thailand (85% of internet users)
LINE Pay, LINE Games, LINE Music
Basically Japan's answer to WeChat
These aren't startups. These are entrenched superapps that control how hundreds of millions of people communicate, pay, and interact online.
And in 2018-2019, both independently decided: "We should have a blockchain."
The Origin Stories
Klaytn (Kakao's Chain)
In March 2018, Kakao established Ground X in Japan to build their blockchain. CEO Jason Han had a PhD-level technical background and a vision: blockchain should be invisible to users.
"Technology is meaningful only when it is used by people."
Klaytn launched mainnet on June 27, 2019 with a stacked Governance Council:
LG Electronics
Netmarble (Korean gaming giant)
PUBG (yes, that PUBG)
Wemade
UnionBank of the Philippines
Axiata Group (Southeast Asian telecom)
Combined market value of council members: $65+ billion.
The tech specs were enterprise-grade: 4,000 TPS, 1-second block finality, and crucially, integration with KakaoTalk via the Klip wallet. Every Korean with KakaoTalk could access crypto without downloading a separate app.
By its peak, Klaytn had:
KLAY hit an all-time high of $4.38 in April 2021.
Finschia (LINE's Chain)
LINE started even earlier. In 2018, they launched LINE Blockchain with their own token called LINK.
The evolution:
2018: LINE Blockchain launches
2020: Rebrand to focus on enterprise
December 2022: Finschia mainnet launches as the 3rd generation blockchain
Finschia used the Cosmos SDK with a proprietary consensus algorithm called Ostracon:
By 2023, Finschia had:
In December 2023, LINE NEXT (the Web3 subsidiary) raised $140 million from Crescendo Equity Partners – the fund backed by PayPal co-founder Peter Thiel.
Largest Web3 investment in Asia that year.
The Merger: January 2024
On January 16, 2024, Klaytn and Finschia dropped the news: they were merging.
Think about how unusual this is. Two separate corporate blockchain projects, backed by competing tech giants from different countries, deciding to combine rather than fight for the same Asian market.
The governance vote passed overwhelmingly:
Finschia: 95% approval
Klaytn: 90% approval
The pitch was clear: together, they'd create "the largest Web3 network in Asia" with 420+ dApps and services.
August 29, 2024: Kaia mainnet goes live.
The token migration:
New foundation formed: Kaia DLT Foundation New chairman: Dr. Sam Seo (PhD in high-performance computing, former CTO at Ground X, former scientist at Argonne National Laboratory)
The Tech: What Kaia Actually Does
Kaia inherited the best of both chains:
SpecValueBlock time1 secondFinalityImmediate (no waiting)TPS4,000Gas fees1/10th of EthereumEVM compatibilityFullConsensusModified Istanbul BFT
The network architecture has three layers:
Core Cell Network – Transaction processing
Endpoint Node Network – API handling
Service Chain Network – Independent chains for specific dApps
But here's what matters: native integration with KakaoTalk and LINE.
Users don't need to understand blockchain. They open their messenger, access Mini DApps, and interact with Web3 without knowing they're on a blockchain. No MetaMask. No seed phrases for most users. Just their existing LINE/Kakao login.
The TON Playbook: Mini DApps
Kaia watched what happened with TON and Telegram in 2024. Telegram integrated TON, mini-apps exploded, and TON became one of the fastest-growing blockchains.
Kaia's response: "We can do that. But bigger."
January 2025: LINE NEXT launches Mini DApps powered by Kaia inside LINE Messenger.
The Kaia Wave program invited developers to build. From 800 applications, they selected 30 initial teams, with plans to onboard 150+ by mid-2025.
The results so far:
64 live Mini DApps (out of 800+ applications)
41 million unique users
$6.3 million in crypto payments (excluding fiat)
Top 3 dApps: $1,700 average revenue per paying user
That ARPU number is insane. It's 3x higher than typical Web3 gaming.
The Hit Games
Bombie (by Pluto Studio, same team as Catizen):
12 million+ users across LINE and Telegram
#1 revenue-generating Mini DApp on LINE
First token to launch on the platform ($BOMB)
43 million users attracted in 6 months during Telegram phase
Boxing Star X:
Other Notable Mini DApps:
Captain Tsubasa -RIVALS- (licensed manga IP)
Shin-chan's Match Daily (Crayon Shin-chan IP)
TOFU Story
Cattea
Meowtopia
Frog Defense (1.7M TikTok followers for the IP)
The strategy is smart: bring established IPs and proven Telegram games to LINE's 196 million users.
The Funding: Big Names Came In
April 2025: Kaia Foundation announced a strategic funding round.
Lead investors:
Participants:
Galaxy Digital
The Spartan Group
IDG Capital
Mirana Ventures
MEXC Ventures
Caladan
SNZ Holding
This wasn't just money. It was validation from Western crypto VCs that Kaia's Asia strategy could work globally.
The partnership includes:
Business strategy development
Connections to traditional finance (like Visa)
Help expanding Mini DApps beyond Asia
The Stablecoin Play
May 2025: Tether launched native USDT on Kaia.
This is huge. Not bridged USDT – native USDT, directly issued by Tether with 1:1 USD reserves.
Why it matters:
Users can send payments within chat interfaces
Cross-border transfers become trivial
DeFi on Kaia gets real liquidity
Kaia is also working on KRW and JPY stablecoins pending regulatory clarity. If those launch, you'd have the dominant South Korean and Japanese messaging apps with their own currency stablecoins.
That's... a lot of potential payment volume.
Current State (2025)
The Good:
5th largest EVM L1 by active wallets
41 million users touched through Mini DApps
Native USDT integration
Joined Japan Blockchain Association (June 2025)
Expanding to Vietnam and Indonesia
75+ Mini DApps live, targeting 1,000 by end of 2025
Backed by Blockchain Capital, 1kx, Galaxy
The Concerning:
Token down ~80% from KAIA ATH ($0.41 in Dec 2024)
KLAY down ~97% from original ATH ($4.38 in 2021)
Competing against TON with far more global reach
Regulatory uncertainty in Japan and Korea around stablecoins
Asia-focused strategy limits global growth
No killer dApp yet (Bombie is successful but not Notcoin-level)
The Honest Assessment: Kaia is the best-positioned blockchain to capture Asian mainstream users. Full stop.
No other chain has native integration with apps used by 250+ million people. No other chain has the backing of two $10B+ tech conglomerates. No other chain is as invisible to end users.
But "best positioned" isn't the same as "winning."
TON proved the messenger-to-blockchain model works. Kaia has the integration advantage in Asia but needs to execute on:
Getting that first viral hit (a Notcoin-level moment)
Launching those KRW/JPY stablecoins
Converting Mini DApp users into actual on-chain activity
Investment Thesis
Bull Case:
250M+ users already using KakaoTalk and LINE daily
Native USDT provides real utility
$1,700 ARPU proves Asian users will spend
Blockchain Capital/1kx investment signals Western expansion
KRW/JPY stablecoins could unlock massive payment volume
Mini DApp momentum accelerating
Japan Blockchain Association membership opens enterprise doors
Bear Case:
Token has crashed 97% from Klaytn's 2021 ATH
Asia-only focus limits total addressable market
TON has global momentum Kaia lacks
Regulatory risks around stablecoins in Korea/Japan
Corporate backing can mean slow, cautious execution
No viral cultural moment yet
My Take:
Kaia is essentially making a bet that Asia's Web3 adoption will come through super-apps, not crypto-native interfaces.
If that bet is right, Kaia wins by default. They have the distribution. They have the user base. They have the infrastructure.
The merger was smart. Instead of Klaytn and Finschia fighting each other for the same market, they combined into something that actually has scale.
But the token price tells you the market isn't fully buying it yet. Which either means it's undervalued... or the market sees risks the bulls are ignoring.
The Bottom Line
In 2018, Kakao and LINE both said "we need a blockchain."
In 2024, they realized they'd be stronger together.
In 2025, they're executing on making blockchain invisible to 250+ million users who just want to play games, send money, and collect digital stuff.
Kaia isn't trying to be Ethereum. It's not trying to be Solana. It's trying to be the blockchain that powers Asia's digital life – the layer underneath apps people already use every day.
If TON proved the messenger-to-blockchain thesis, Kaia is testing whether it works with bigger, more established apps in the most digitally advanced markets on Earth.
They have the users. They have the tech. They have the funding.
Now they just need the moment.
Not financial advice. The author may hold positions in projects discussed. DYOR. And if you're in Korea or Japan, you're probably already using these apps – might as well see what Kaia's building.