Tether (USDT) Dominates Stablecoin Transactions in South Korea's Financial Market

Stablecoin adoption in South Korea is benefiting the financial market, with Tether (USDT) transactions leading the way.

Stablecoins are gaining traction in South Korea, with government reports indicating that around 10% of domestic trade transactions now involve these digital assets. This shift is particularly beneficial for smaller traders and business owners.

According to a Korean government official, roughly 10% of domestic trade transactions now use stablecoins. Among stablecoins, Tether (USDT) dominates the market with a 72% share, and most of these transactions occur on the Tron blockchain, likely due to its speed and low fees compared to Ethereum.

In terms of stablecoin transactions, Tether (USDT) and Tron (TRX) are leading the way. USDT holds a 72% market share in South Korea, and TRX is the preferred blockchain for USDT transfers due to its speed and low fees compared to ETH.

The preference for Tron over Ethereum for USDT transfers is evident in the data, which shows a shift toward Tron-based transactions starting around 2021. By 2023, Tron-based USDT transactions accounted for the majority of both transaction amounts and counts.

In the Korean trade sector, stablecoins are becoming increasingly common. One example is a trader who received $1 million in trading fees in USDT, avoiding the need for traditional bank documentation and delays.

According to an insider with knowledge of these trades, many small traders and individual business owners find stablecoins to be a cost-effective and efficient solution, especially since corporate accounts for such transactions are not available in Korea.

The market capitalization for the top stablecoins, including USDT, USDC, BUSD, DAI, and TUSD, varied from November 2023 to October 2024.

BUSD and DAI experienced more fluctuations, particularly during early 2024 and late 2024. DAI's market cap decreased in November 2023 and October 2024, likely due to market adjustments affecting its DeFi-linked structure.

Among the top stablecoins, Tether (USDT) maintained a clear lead throughout the period, with a market capitalization exceeding $120 billion by October 2024. Notably, USDT's market share increased over time.

While USD Coin (USDC) remained the second-largest stablecoin, its growth appeared to stabilize at a lower level after early 2023. Binance USD (BUSD) experienced a sharp decline, possibly related to regulatory actions.

Meanwhile, newer stablecoins, such as PYUSD, showed modest growth but remained relatively small compared to the leading stablecoins.