Volatility of Won: why Korean investors are switching to stablecoins

GweiWatcher · 2026-01-30T06:16:20+00:00

South Korea is experiencing unprecedented demand for stablecoins, with trading volumes rising by 62% due to the weakening national currency. Investors view stablecoins as a hedge against currency risk amid economic challenges, prompting market platforms to adapt quickly. Regulatory changes have also facilitated growth, allowing corporate investment in cryptocurrencies. Major exchanges are focusing on stablecoins during this downturn, indicating consistent demand for low-volatility assets.

GweiWatcher

2026-01-30 06:16:20

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South Korea is facing unprecedented demand for stablecoins. According to analysts at NS3.AI, trading volumes of stable digital assets have increased by 62% amid a sharp depreciation of the national currency against the US dollar. This trend reflects deeper economic challenges faced by the South Korean market.

Economic Factors Driving the Shift to Crypto Assets

The decline of the won to multi-year lows has created an ideal environment for increased interest in stablecoins. Investors in Korea see them as a hedge against currency risk — a pressing issue amid economic slowdown. Major trading platforms responded immediately to the demand by launching specialized programs to boost trading volumes of stable tokens. This market dynamic is directly linked to the instability of the local economy and the overall recession in the crypto sector.

Regulatory Shifts and Their Impact

Changes in the Korean government’s policies also play a key role in transforming the market. Recent approval for corporate structures to actively invest in cryptocurrency assets has opened new channels for capital inflow. This regulatory turn not only legalized sector growth but also gave institutional weight to the movement toward stablecoins.

Major Platforms Accelerate Adoption

Amidst the lull in the global crypto market, Korean exchanges have adopted a strategy of focusing on stablecoins as a more conservative and predictable segment. This tactic has allowed platforms to grow their customer base and maintain trading volumes during challenging times. Initiatives by major market operators demonstrate that even in a bear market, there is demand for low-volatility assets.

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