South Korean exchanges see sharp drop in stablecoin holdings

Stablecoin holdings on South Korean cryptocurrency exchanges have plummeted since July of last year, CoinDesk reported. The value of stablecoins in wallets associated with the country's five largest exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—fell from $575 million in July 2025 to $188 million this March. The report attributes the decline to an accelerating capital outflow as the won-dollar exchange rate surpassed 1,500. CoinDesk explained that retail investors are increasingly converting dollar-denominated assets like stablecoins into won to move funds into the domestic stock market. This capital flight has been further encouraged by the won's depreciation. As a result, liquidity in the local crypto market is weakening, with any future return of funds likely depending on the performance of South Korean stocks.