Korean Crypto Exchanges See 62% Stablecoin Surge Amid Dollar-Won Volatility

Highlights:

• Stablecoin trading in Korea spiked 62% in January.
• Exchanges discussed USDC and USDe promotions to raise trading activity.
• The government and banks intervened to stabilize the won-dollar rate.

Cryptocurrency exchanges in South Korea are shifting focus to stablecoins as the local currency weakens against the U.S. dollar. According to a report by The Korea Times, the high demand for dollar-pegged assets has led to platforms waiving the trading fee and conducting reward-based campaigns. Meanwhile, government agencies have intervened in both the banking and crypto markets to stabilize the exchange rate.

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Stablecoins Become Central to Korean Crypto Strategy

Korean crypto exchanges have initiated stablecoin-focused campaigns in order to grow volumes. Korbit eliminated trading commissions on USD Coin (USDC), a Circle-backed coin. The exchange also launched a reward campaign for the USDC traders. Traders with a weekly volume of above 10 million won are eligible to share a pool of 25,000 USDC.

Coinone replicated that approach with an 8,000 USDC reward pool. The largest platforms in South Korea, Upbit and Bithumb, listed a new synthetic stablecoin called USDe. USDe is a dollar peg created by Ethena Labs, which utilizes no bank reserves. Both platforms initiated promotions rewarding top traders with Ethena tokens.

🚨Stablecoin surge in South Korea! 📈

Trading volume UP 62% as KRW hits multi year lows vs USD.

Currency pressure + gov moves fueling the rush to dollar-pegged stables.

Exchanges pushing campaigns hard amid broader crypto dip.

Institutions & retail stacking USDT/USDC?… pic.twitter.com/OA6g0LE91M

— ChartSage (@CryptoChartSage) January 25, 2026

In addition, CryptoQuant reported that the trading of stablecoins in the five largest markets had increased by 62% when the dollar surpassed 1,480 won. Liquidity in Tether (USDT) amounted to 378.2 billion won, which is approximately 261M. This increase in value occurred after nine consecutive days of depreciation of its won, the longest streak since 2008.

A representative of a large exchange noted that the stablecoins are currently regarded as a means to lift volumes in crises and expand revenue streams.

Government and Banks Respond to Currency Pressure

The rates of interest on the dollar deposits in the banks came down as the exchanges encouraged the use of stablecoins. The move was a response to government pressure to reduce the outflow of capital. Shinhan Bank reduced its interest rate from 1.5% to 0.1%, while Hana Bank reduced its rate from 2% to 0.05%.

Shinhan offered a 90% rate of converting the dollar into the won to encourage conversions to the local currency. Further rate bonuses were provided to those who deposited in won later. These measures were due to a response to a meeting between the regulators and banking executives at which officials demanded less promotion of dollar savings products.

The dollar balance in the five large banks fell 3.8% to $63.25 billion by January 22. The decrease was led by corporate dollar holdings that decreased to $49.83 billion from $52.42 billion. Individual dollar deposits also increased, although at a slower pace than last month.

President and Lawmakers Move to Regulate Stablecoin Use

The currency issue was discussed by President Lee Jae-myung during a public briefing. He forecasted that the rate would stabilize at about 1,400 won in two months. The market responded swiftly as the won dropped from 1,481.4 to 1,467.7 before it closed at 1,471.3.

At the legislative level, South Korea moved to include stablecoins in the Foreign Exchange Transactions Act. A bill to create stablecoins as a means of payment under the law was proposed by Representative Park Sung-hoon. He stated that the lack of regulation may allow stablecoins to evade taxes and illegal forex trading.

The Bank of Korea supported the issue, noting that the digital dollars can avoid reporting procedures. Legislators are now advocating to regulate stablecoins as fiat currency under the current financial rules. Meanwhile, Korea recently removed a nine-year ban on corporate crypto investment. Firms can now invest up to 5% of capital in the top 20 digital assets.

South Korea has ended its nine-year ban on corporate cryptocurrency investments, allowing listed companies to invest up to 5% of their equity in cryptocurrencies. This is positive news for the entire crypto market, especially Bitcoin, as new capital entering the market will… pic.twitter.com/LAXqVcLaP5

— PiNetwork DEX⚡️阿龙 (@fen_leng) January 12, 2026

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