Dollar-Pegged Stablecoins Fuel U.S. Treasury Demand — Japan and South Korea Race to Launch Local Alternatives
TradingKey – As the supply of U.S. dollar-backed stablecoins surges, Japan and South Korea are accelerating efforts to develop their own yen- and won-based stablecoins, aiming to keep pace with global digital currency trends.
On August 19, Bank of Korea Governor Rhee Chang-yong reiterated his support for a Korean won stablecoin, stating:“A won-backed stablecoin is necessary, but the smarter approach is to introduce it through banks first, then expand gradually.”
In early July, the Bank of Korea established a new Virtual Asset Division, tasked with leading internal discussions on stablecoin strategy and digital asset policy.
South Korea’s four major banks — KB Kookmin Bank, Shinhan Bank, Hana Bank, and Woori Bank — are actively preparing to issue stablecoins. According to local reports, executives are expected to meet with Circle (CRCL) CEO Heath Tarbert later this month to explore potential partnerships and compliance frameworks.
Japan is also making rapid progress. On August 17, the Financial Services Agency (FSA) granted JPYC, a local stablecoin issuer, a license as a “Funds Transfer Service Provider.” This paves the way for the launch of Japan’s first compliant yen-backed stablecoin, expected in October.
Since President Trump signed the GENIUS Act on July 18, the supply of dollar-pegged stablecoins has surged, triggering a spike in demand for U.S. Treasuries, which back these tokens. Treasury Secretary Scott Bessent has openly praised the trend, calling it a “win-win” for users, issuers, and the government.
The standout performer is USDe, a yield-bearing stablecoin whose circulating supply grew 70% in just one month, surpassing $10 billion. As of today, USDe’s market cap stands at $11.4 billion, ranking third globally, behind USDT and USDC.
Top 5 Stablecoins by Market Cap – Source: CoinMarketCap
Related Articles
[Crypto IPO] Figure Technology Follows Circle and Bullish with Nasdaq Listing Plans
On August 18, U.S.-based blockchain lending firm Figure Technology Solutions Inc. publicly announced it has filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), signaling its intent to go public on the Nasdaq Global Market under the ticker symbol FIGR.
Japan July CPI Preview: With Inflation Cooling, Will the Yen Still Rise?
TradingKey - Japan is set to release July inflation data on 22 August 2025. Market consensus predicts that the national Consumer Price Index (CPI) excluding fresh food will see its year-on-year increase slow from 3.3% in June to 3%. While forecasts for headline CPI and CPI excluding food and...
Powell's Jackson Hole Speech: For U.S. Stocks, Hawk or Dove Signal Could Be a Lose-Lose?
TradingKey - As U.S. inflation and labor market data show signs of rebalancing, Treasury traders and Wall Street banks have largely priced in a rate cut at the September FOMC meeting — the first of 2025. Yet both a more dovish-than-expected tone and a potential surprise hawkish signal from Fed Chair
Eurozone Q2 GDP Commentary: Will the Euro's Upward Momentum Persist?
TradingKey - On 14 August 2025, Eurostat published Q2 GDP figures, revealing a drop in the Eurozone's quarter-on-quarter growth from 0.6% in the first quarter to 0.1%. Consequently, annual growth eased from 1.5% to 1.4%. The slowdown primarily stems from the diminishing boost from European...
Bridgewater Associates Q2 2025 13F Analysis: Founder Ray Dalio’s Final Act
TradingKey - Bridgewater Associates, the world’s largest hedge fund and renowned for its macroeconomic analysis, continues to command market respect with its “risk parity” strategy and precise economic cycle timing.
