Japan, South Korea lead Asia’s local stablecoin push in 2025
Japan and South Korea are spearheading Asia's move toward local currency-backed stablecoins in 2025, despite USD-backed coins still dominating liquidity.Summary
As 2025 concludes, Asia is strategically shifting toward a diversified stablecoin ecosystem, moving beyond sole reliance on U.S. dollar-backed options like USDT and USDC. Japan and South Korea are leading this trend, driven by regulatory encouragement for local currency issuance to keep domestic financial systems relevant on-chain. In Japan, fintech firm JPYC launched a legally recognized yen-backed stablecoin, while megabanks initiated pilots for tokenized deposits and settlement, supported by the Financial Services Agency. South Korea saw the launch of KRW-pegged stablecoins like KRW1 and KRWQ across various networks, with KakaoBank also advancing its own initiative. Experts note that while this signals diversification, the actual shift in liquidity remains uncertain, as USD stablecoins still command over 97% of the $312 billion market. The most significant non-USD launches, such as JPYC and KRW1, are primarily focused on payment infrastructure, cross-border remittances, and trade settlement, aiming to align digital currency systems with regional trade patterns rather than immediately replacing the dollar.
(Source：The Block)