2025 is witnessing a strategic shift in Asia's stablecoin landscape, with Japan and South Korea emerging as two pioneering nations in developing stablecoins Peg to their local currencies, rather than relying entirely on the USD.
Japan: From legal framework to practical implementation
In Japan, fintech company JPYC has issued the first legally recognized Peg -pegged stablecoin, marking a significant milestone in the realization of the stablecoin legal framework that the country has been developing for some time.
Simultaneously, Japan's largest banks, such as MUFG, SMBC, and Mizuho, have launched pilot programs for stablecoins to facilitate interbank payments and settlements. The goal of these projects is to reduce transfer costs, shorten settlement times, and prepare for the application of stablecoins on a corporate and international trade scale.
South Korea: Won stablecoin flourishes across multiple blockchains.
Meanwhile, South Korea is witnessing a wave of stablecoin launches Peg to the won (KRW) on various blockchain platforms. Notable examples include:
- KRW1 – Peg Won stablecoin deployed on Avalanche
- KRWQ – a Peg Won stablecoin issued on Base
These projects reflect South Korea's strategy of diversifying its blockchain infrastructure while testing stablecoin models suitable for domestic payments and cross-border trade in the region.
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USD stablecoins still dominate, but a gap is opening up.
Nevertheless, according to The Block, USD Peg stablecoins still hold a dominant position, accounting for approximately 97% of the market share, equivalent to $303.3 billion in market Capital . Stablecoins like USDT and USDC continue to be the backbone of global liquidation , especially in crypto and DeFi transactions.
However, non-USD stablecoins in Asia are not aiming for direct competition in terms of scale, but rather focusing on regional Use Case , including:
- Bilateral trade payments
- Cross-border settlement in local currency.
- Reducing exchange rate risks and USD dependence in regional supply chain .
Strategic significance for Asia
The proactive promotion of domestic currency stablecoins by Japan and South Korea demonstrates Asia's pursuit of building a more self-reliant digital financial infrastructure tailored to the region's economic characteristics. In the long term, these initiatives could:
- Creating a foundation for digital trade using local currency.
- Supporting financial connectivity between Asian economies.
- Laying the foundation for a multipolar stablecoin ecosystem, instead of being absolutely dependent on the USD.
