Bithumb's Stablecoin Strategy Navigates Regulations to Secure Market Share

Bithumb, South Korea’s second-largest cryptocurrency exchange, has launched a new USDT-KRW trading pair as part of its 12th-anniversary initiatives, signaling a strategic pivot toward stablecoin markets. The move aligns with the exchange’s broader efforts to expand its domestic footprint amid evolving regulatory frameworks and growing institutional interest in digital assets. Bithumb’s leadership cited a "significant increase in trading volume" following the listing of USDT, underscoring the token’s central role in its market-share ambitions [1]. The exchange has also restructured its operations, creating a separate entity—Bithumb A—to pursue a KOSDAQ listing, a step toward institutionalization and financial product diversification [1].

The reorganization reflects Bithumb’s dual focus on scaling its core exchange business and exploring new revenue streams. Bithumb Korea, which will handle the crypto exchange operations, is preparing for an initial public offering (IPO) on South Korea’s KOSDAQ market, with a potential secondary listing on Nasdaq under consideration [4]. This restructuring, effective July 31, separates venture investments and asset management into Bithumb A, which will consolidate the exchange’s investment arms, including Bithumb Partners, now redirected toward equities and bonds. The shift aims to streamline operations while aligning with South Korea’s regulatory push for digital asset modernization [1].

Bithumb’s USDT-KRW trading volume surge highlights the growing domestic demand for stablecoins, driven by aggressive fee promotions and strategic market positioning. Analysts attribute this trend to the token’s role as a liquidity bridge between fiat and crypto markets, particularly in regions with fragmented regulatory clarity. The exchange’s initiatives also align with government-backed stablecoin infrastructure development, though complex legislation remains a hurdle for full implementation [1]. Historical data from Kanalcoin suggests that similar on-chain ecosystem strategies—such as Coinbase’s incentivization programs—can enhance market liquidity and user engagement [1].

The 12th-anniversary milestone coincides with Bithumb’s financial turnaround, posting a 2024 operating profit of 130.8 billion won ($95 million), reversing a 149 billion-won loss in 2023 [4]. This profit reflects increased trading activity and strategic cost management. The exchange’s stablecoin-focused expansion is expected to further solidify its position in South Korea’s competitive crypto landscape, where regulatory scrutiny and market volatility remain key challenges. Bithumb’s leadership emphasized that the USDT initiative is part of a long-term strategy to "strengthen market share" by leveraging stablecoins as a gateway to broader crypto adoption [1].

Looking ahead, Bithumb’s alignment with global trends in stablecoin adoption—mirrored by exchanges like Kraken and Coinbase—positions it to capitalize on the token’s role in cross-border transactions and decentralized finance (DeFi) ecosystems. However, the exchange must navigate regulatory uncertainties and ensure compliance with South Korea’s evolving digital asset laws. As the 12th anniversary underscores Bithumb’s resilience and adaptability, its success in scaling USDT trading and achieving its IPO goals will depend on maintaining this strategic balance between innovation and regulatory alignment [1].

Source: [1] Bithumb Reorganizes Amid Stablecoin Market Expansion (https://www.kanalcoin.com/bithumb-stablecoin-market-expansion/) [4] Bithumb to Split in 2 as Crypto Exchange Inches toward South Korean IPO (https://www.coindesk.com/markets/2025/04/22/bithumb-to-split-in-two-as-crypto-exchange-inches-toward-south-korean-ipo)