The Korean Won (KRW) is the second most actively traded fiat currency in the digital asset market after the US Dollar, accounting for approximately 30% of global spot trading volume, according to Philboard, citing a report co-published by Redstone and Kaia. The report states, “Institutional conditions for utilizing such abundant KRW liquidity for on-chain lending or decentralized finance (DeFi) collateral have not yet been sufficiently established in Korea. The net outflow of stablecoins from the top 5 KRW exchanges has continued to be negative for 18 consecutive months, with the cumulative net outflow reaching 14.92 trillion won (10.4 billion dollars). The delay in the institutionalization of KRW stablecoins is the background for this. If incorporated into the institutional framework in the future, KRW stablecoins could expand their use beyond payments to DeFi collateral and tokenized security settlement assets.”
