Japan and South Korea lead the domestic stablecoin development trend in Asia by 2025

By the end of 2025, the stablecoin market in Asia has undergone many changes compared to a year earlier. Although USD-pegged stablecoins like USDT and USDC still dominate in liquidity, many countries in the region have promoted the development of stablecoins linked to local currencies to diversify the ecosystem and reduce dependence on the USD.

Japan and South Korea are typical examples. Japan launched a legally recognized yen stablecoin, while the three major banks MUFG, SMBC, and Mizuho implemented pilot projects on stablecoins and tokenized deposits. South Korea also saw the emergence of won-pegged stablecoins such as KRW1 and KRWQ, along with the participation of KakaoBank.

However, experts believe it is still too early to assess the level of practical adoption. USD-pegged stablecoins still account for over 97% of the market, reflecting the central role of the USD in global finance. Looking ahead to 2026, Asia may establish a “multi-currency stablecoin corridor,” focusing on cross-border payments and transactions.