Regulators and Firms Vie to Shape Korea’s Stablecoin Future

Binance and Tether are closely monitoring South Korea’s evolving regulatory and market landscape for stablecoins, as key players such as Circle, Ripple, and Japanese startups move to expand their influence in the region. South Korea has emerged as a focal point for global stablecoin initiatives due to its proactive stance on digital asset regulation and its well-developed fintech ecosystem. This development has intensified competition among stablecoin providers seeking to secure a foothold in the market [1].

Circle, the company behind the USD Coin (USDC), has taken significant steps to establish its presence in South Korea. The firm’s president, Heath Tarbert, recently engaged with key stakeholders in the Korean crypto and financial sectors, signaling the company’s intent to explore new stablecoin opportunities. USDC is now listed on major Korean exchanges including Bithumb and Upbit, facilitating broader adoption among local traders and institutions [1]. Circle is also considering the development of a Korean won-pegged stablecoin, either independently or in collaboration with local partners, which could further integrate the country’s digital asset market with global blockchain infrastructure [1].

The regulatory environment in South Korea is a critical factor driving interest from international stablecoin firms. The government has been actively developing a legal framework for stablecoins, and there are indications that a comprehensive strategy is being formulated. This approach is supported by policymakers who see stablecoins as a valuable tool for enhancing cross-border payments and fostering innovation in the financial sector. The potential for a regulated stablecoin regime in Korea has attracted attention from global players, with firms like Circle and Ripple evaluating how best to align their offerings with local compliance requirements [1].

In parallel, Ripple has partnered with SBI Holdings to launch Ripple USD (RLUSD) in Japan, with distribution set to begin in early 2026. RLUSD is fully backed by U.S. dollar assets and has been designed for institutional use, emphasizing transparency and regulatory compliance. SBI VC Trade, a subsidiary of SBI Holdings, will serve as the exclusive distributor in Japan, which has recently approved stablecoin regulations. This partnership is expected to enhance the reliability and efficiency of stablecoin transactions in Japan, positioning Ripple to gain a competitive edge in the Asia-Pacific region [3].

Meanwhile, a Tokyo-based startup announced plans to issue the first yen-backed stablecoin later in 2025. The company, JPYC, aims to facilitate low-cost, instant transactions and expand the use of stablecoins in trade and intercompany payments. Its projected issuance of over 1 trillion yen’s worth of stablecoins over three years underscores growing confidence in the technology’s potential to reshape financial infrastructure [2]. This development highlights the broader trend of Asian markets embracing stablecoins as a means to enhance liquidity and payment efficiency.

The growing interest in stablecoins across East Asia reflects both the maturation of the digital asset ecosystem and the demand for more efficient cross-border financial solutions. With regulatory clarity improving and market infrastructure expanding, South Korea and Japan are positioned to become key hubs for stablecoin innovation and adoption. As Binance, Tether, and other major players continue to observe the region, the competition to lead in this space is expected to intensify [1][2][3].

Source:

[1] Circle sees Korea as a key hub for global stablecoin growth (https://thepaypers.com/crypto-web3-and-cbdc/news/circle-sees-korea-as-a-key-hub-for-global-stablecoin-growth)

[2] Japan startup to issue first yen-backed stablecoin (https://www3.nhk.or.jp/nhkworld/en/news/20250825_B5/)

[3] Ripple and SBI to launch RLUSD stablecoin in Japan by 2026 (https://thedigitalbanker.com/ripple-and-sbi-to-launch-rlusd-stablecoin-in-japan-by-2026/)