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Korean Won Represents 25% of Global Fiat Cryptocurrency Trading Volume
A recent report by Kaiko and Upbit reveals that the Korean won (KRW) constitutes approximately 25% of the global fiat-denominated cryptocurrency trading volume, making it the second most significant currency in this market after the US dollar, which accounts for around 48.7%.
The report highlights that the South Korean cryptocurrency market predominantly relies on fiat-native trading, with KRW trading pairs leading the trading activities. On the Upbit exchange, a market buy order of 10 million Korean won typically experiences slippage ranging from 0.005% to 0.02%.
Stablecoins such as USDT and USDC are frequently utilized as trading assets against the Korean won rather than serving as the main medium for settlement. The integration of South Korean exchanges with the banking system through real-name accounts and Know Your Customer (KYC) protocols allows users to deposit and withdraw directly in Korean won, which diminishes the reliance on stablecoins for these transactions.
The report suggests that the potential for Korean won stablecoins lies in their use for on-chain settlements, cross-border payments, and decentralized finance (DeFi) applications. However, the broader adoption of these stablecoins will depend on regulatory frameworks, reserve standards, redemption rights, and integration with exchanges.
Source: KLEA News