South Korean Crypto Exchanges Lean on Stablecoins During FX Market Turmoil

Key Insights:

• South Korean crypto exchanges push stablecoins as FX volatility lifts demand for dollar-linked crypto assets.
• Fee waivers and reward campaigns aim to boost stablecoin trading volumes during market slowdown.
• Rising won-dollar rates drive traders toward stablecoins as a hedge against currency fluctuations.

South Korean crypto exchanges are intensifying their focus on dollar-pegged stablecoins as foreign exchange volatility changes trading patterns across local crypto markets.

A rise in the won-dollar exchange rate has coincided with stronger demand for stablecoins, leading exchanges to adjust fee structures, launch trading campaigns, and expand token listings to respond to shifting market activity.

Traditional financial markets in South Korea have shown strong performance, with the benchmark KOSPI index and commodities such as gold and silver reaching record highs.

In contrast, cryptocurrencies have remained outside the broader rally, which has weighed on overall trading volumes.

As the U.S. dollar strengthened, users increasingly turned to dollar-denominated stablecoins, prompting exchanges to promote them as a way to sustain activity.

Stablecoin Campaigns & Fee Adjustments at South Korean Crypto Exchanges

Crypto exchange Korbit introduced a fee waiver for USD Coin (USDC) trading last week. Circle issues USDC and backs it with U.S. dollar reserves, with each token intended to maintain a one-to-one value with the dollar.

Alongside the fee waiver, Korbit launched a trading campaign scheduled to run through March.

Users who achieve at least 10 million won, or about $6,900, in cumulative weekly USDC trading volume can share a reward pool of 25,000 USDC. In addition, the allocations would be determined by each participant’s weekly trading volume.

Simultaneously, Coinone launched a similar campaign, distributing a weekly reward pool of 8,000 USDC among participants based on their trading activity.

Upbit and Bithumb, the largest and second-largest crypto exchanges in the country, expanded their stablecoin offerings by listing USDe on January 14.

Ethena Labs developed USDe as a synthetic stablecoin designed to maintain a one-to-one value with the U.S. dollar without relying on traditional banking reserves.

Both platforms introduced trading campaigns related to the new listing, while Upbit launched a three-round promotion starting Jan. 17 that offers Ethena tokens to top USDe traders.

FX Volatility Drives Stablecoin Activity at Crypto Exchanges

The recent rise in the won-dollar exchange rate has closely tracked increased stablecoin trading. As the exchange rate rose, trading volumes in dollar-denominated tokens climbed across local platforms.

Data from on-chain analytics provider CryptoQuant show that when the exchange rate surpassed 1,480 won per dollar, trading volume in Tether (USDT) across five major won-based crypto exchanges reached 378.2 billion won.

This marked a 62% increase compared with Jan. 1. Industry officials attribute the rise in trading stablecoins to currency market conditions.

According to one crypto exchange representative, platforms are increasing marketing in dollar-denominated stablecoins in response to an increased interest in foreign exchange flows.

The official also mentioned that stablecoins would be viewed as a means to keep trading and earn a profit in times of low crypto market performance.

South Korean crypto exchanges have responded to these forces by waiving fees, offering incentive plans, and expanding stablecoin listings. These strategies are associated with adapting to user demand and currency market trends.