Won-Based Stablecoin Issues in 2025

1. Discussions on introducing a Korean won-based stablecoin in Korea
- Ahead of the 2025 presidential election, a 'Korean-style won-based stablecoin' has been drawing attention, and President Lee Jae-myung emphasized its necessity to prevent the outflow of foreign currency.
Candidate Lee Jun-seok called for a cautious approach, citing the Luna incident.
2. Introduction of a regulatory framework by the Korean government
- The Korean government plans to introduce a comprehensive stablecoin regulatory framework, including the 'Digital Asset Basic Act', by the end of 2025.
The key is to establish a legal basis so that all financial and non-financial corporations with capital of 500 million won or more can issue stablecoins</strong> with authorization from the Financial Services Commission.
3. The Trump administration's pro-stablecoin policy
- The Trump administration is actively pursuing stablecoin-related policies, and right after taking office it set the goal, through an executive order, of "protecting the international dominance of the dollar by promoting the development and growth of lawful and legitimate dollar-backed stablecoins."
4. Explosive market growth
- In 2024, stablecoin issuance increased by more than 64% year on year, exceeding 200 billion dollars, and as of April 2025 the global stablecoin market has grown to about 240 billion dollars.
Citi expects stablecoins to reach 1.6 trillion dollars by 2030 in its base case and 3.7 trillion dollars in its optimistic case.
5. Expanding real-life use
- In Korea, stablecoins are increasingly being used for trade settlement, overseas remittances, investment and more.
According to government estimates, about 10% of Korea's trade transactions in 2023 were processed with stablecoins.
Individual investors are also actively using stablecoins such as Tether when moving funds to overseas exchanges or investing in dollar assets.
Demand has grown to the point that Tether's monthly trading volume in Korea reaches about 20 trillion won.
6. Concerns about monetary sovereignty
- According to the Bank of Korea, the trading volume of dollar-based stablecoins on Korea's five major exchanges, including Upbit and Bithumb, in the first quarter of 2025 is estimated at about 57 trillion won.
This raises concerns about a shrinking of won-based payments and the burden on foreign exchange policy.
Dollar-type stablecoins are being used as common currency on exchanges, and there are increasing cases of actual stores receiving remittances in Tether or receiving payments in Tether rather than won or dollars.
7. Global competition for monetary hegemony
- The United States is accelerating stablecoin legislation centered on the GENIUS Act, seeking to increase demand for U.S. Treasuries and support government debt financing by securing dollar hegemony.
The EU, the UK, Hong Kong and others are also strengthening their regulatory competitiveness by pursuing CBDC and stablecoin legislation in parallel to secure monetary sovereignty and financial system stability.
8. Tether's dominance
- Tether (USDT) currently ranks first in the stablecoin market with issuance of about 140 billion dollars.
Its holdings of U.S. Treasury assets rank 19th among all holders.
This is higher than the U.S. Treasury holdings of major countries such as Germany and Mexico, and at the current pace of growth, it is expected to exceed Korea's U.S. Treasury holdings within 2025.
9. Technology infrastructure and Big Tech entry
- Major U.S. companies such as Walmart and Amazon are discussing ways to issue and use stablecoins.
In Korea, Shinhan Bank, NongHyup and K Bank are participating in the Pax project of Korea Digital Asset Custody (KDAC) and conducting cross-border remittance tests.
💡 Key points💡
Stablecoins are now going beyond simple cryptocurrencies to become a new battlefield in the global competition for monetary hegemony.
Korea in particular, with its growing dependence on dollar-based stablecoins, is at a critical point where it must find a balance between protecting monetary sovereignty and embracing innovation.
If regulations are put in place and trust is secured, stablecoins are likely to establish themselves as an 'internet of money' widely used in areas such as payments and remittances.
However, concerns about the weakening of domestic financial sovereignty and market instability must also be considered.