Comparison of stablecoin market share in South Korea shows Tether dominating domestic trading, while USD Coin leads in global on-chain payment volume. Data from Bank of Korea and CoinDesk. Graphic by Asia Today and translated by UPI
April 14 (Asia Today) — Circle is stepping up efforts to expand its stablecoin footprint in South Korea, aiming to challenge the dominance of Tether through a dual strategy focused on trading and payments.
Tether currently accounts for more than 80% of stablecoin transactions in South Korea and over 60% globally, according to industry data. Circle’s USD Coin, or USD Coin, holds a much smaller share in Korea, at around 10%.
Industry officials said Circle recently met with major South Korean exchanges, including Upbit, Bithumb and Coinone, to expand USDC trading and improve accessibility. The move is aimed at securing liquidity in one of the world’s largest cryptocurrency markets.
Circle CEO Jeremy Allaire visited South Korea this week and signed agreements with local exchanges and fintech firms to promote stablecoin adoption.
With Dunamu, the operator of Upbit, Circle is working on initiatives focused on regulatory compliance, transparency and user education. With Bithumb, the companies agreed to explore integration of multi-chain digital asset infrastructure and stablecoin technologies. Promotions such as fee discounts and airdrops are also being used to boost USDC trading on platforms like Coinone.
Beyond exchange trading, Circle is also expanding its payment infrastructure. The company is promoting its proprietary network to support real-world payments and cross-border transfers, including partnerships with South Korean fintech firm Hecto Financial.
Analysts say this reflects a broader strategy to compete with Tether not only in trading volume but also in real-world financial use cases.
USDC is backed by cash and U.S. Treasury assets and publishes regular disclosures, a structure that has made it attractive to financial institutions. It also operates across multiple blockchain networks, offering flexibility in transaction speed and fees.
Data suggests USDC has gained traction in payments and transfers. According to industry estimates, its on-chain transaction volume reached about $17 trillion last year, exceeding Tether’s roughly $12.9 trillion, indicating stronger usage in real-world transactions rather than exchange trading.
Experts say competition between the two stablecoins is shifting from market share to function.
“Stablecoin competition is no longer about issuance volume but about use cases,” said Gautam Chughani of CoinShares, adding that USDC is expanding rapidly in payments and institutional finance.
Analysts say Tether is likely to maintain its strength in trading liquidity, while USDC could gain ground through integration with the broader financial system.
Circle said it does not plan to issue a Korean won-pegged stablecoin directly, signaling instead that it may participate as a technology provider in a future bank-led consortium structure.
— Reported by Asia Today; translated by UPI
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