Japan and South Korea Accelerate Local-Currency Stablecoin Development
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 02 2026- Japan's Stablecoin Market: Japan has legalized stablecoins as 'Electronic Payment Instruments' under its amended Payment Services Act, with JPYC gaining legal recognition in 2025, enhancing financial stability and compliance.
- Interbank Settlement Pilots: Major Japanese banks like MUFG and SMBC are running pilot programs using stablecoins and tokenized deposits to improve cross-border corporate transfers and bank liquidity, modernizing financial infrastructure.
- Regulatory Challenges in South Korea: South Korea faces delays in passing the Digital Asset Basic Act until 2026 due to a power struggle between the Bank of Korea and the Financial Services Commission, yet projects like KRW1 indicate a retail-driven demand for stablecoins.
- Path Toward Multi-Currency Stablecoins: Although local-currency stablecoins currently represent a small fraction of global supply, the distinct development paths of Japan and South Korea suggest a strategic move towards reducing dollar dependence and potentially creating a multi-currency stablecoin corridor in Asia.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
