The investments of retail investors in Korea, known as 'Seohakgaemi', who invest in overseas stocks, are concentrating on Circle, the issuer of U.S. stablecoins. According to the Korea Securities Depository (KSD), the most net purchased overseas stock by domestic retail investors in June was Circle. During this period, Seohakgaemi net purchased $609.38 million (about 840.1 billion won) of Circle shares.
Coinbase, the third most net purchased stock, also holds Circle equity and is considered one of the beneficiaries of Circle, as it shares USDC revenue. Circle became the first stablecoin issuer to be listed on the New York Stock Exchange on June 5 (local time), finishing trading on its first day at $83.23, up 168.48% from its offering price of $31. On June 23, it recorded an all-time high of $263.45.
Jeremy Allaire, co-founder and CEO of Circle, was interviewed in writing on July 19. Allaire noted, "An 'iPhone moment' is soon approaching the stablecoin market," adding, "As more and more people and corporations experience the benefits of stablecoins directly, the adoption of stablecoins in the global market is accelerating." He emphasized, "Stablecoins have proven higher efficiency than existing systems in cross-border payments, cross-border remittances, digital commerce, and business-to-business (B2B) transactions." Below is a Q&A.
The reason for founding Circle is.
"I felt that blockchain has the potential to change how money is issued and managed. At the end of 2012, I founded Circle with Sean Neville and launched the stablecoin USDC in 2018. USDC aims to maintain the stability of traditional fiat currency while leveraging the advantages of blockchain technology. Our goal is to make participation in digital currency as easy as writing an email. We aim to upgrade outdated financial infrastructure that is too slow, expensive, and difficult to access. I believe that trusted and secure payments based on blockchain will enable innovation and economic growth."
The advantages of stablecoins are.
"Stablecoins combine the reliability and stability of fiat currencies with the efficiency and accessibility of the internet. Unlike traditional currencies that depend on the existing banking system, stablecoins like USDC allow transactions to be made almost instantly, globally, and at a low cost. They are ideally suited for the digital economy. As more and more people and corporations experience the benefits of stablecoins directly, the adoption of stablecoins in the global market is accelerating."
Examples of how stablecoins are actually used are.
"Stablecoins have already demonstrated higher efficiency than existing systems in cross-border payments, cross-border remittances, digital commerce, and business-to-business (B2B) transactions. In the payments sector, merchants and consumers increasingly recognize the potential for 'frictionless large-scale transactions' based on the immediacy and low cost of stablecoins. Major payment companies, fintech firms, and banks are integrating USDC into next-generation payment solutions."
The differentiating factors of USDC are.
"The attitude prioritizing regulation and transparency of reserves. USDC's reserves consist of 100% U.S. Government Bonds, cash, and cash-equivalent assets. Since its launch in 2018, Circle has published monthly reports on reserve assets through third parties to transparently disclose the composition of USDC's reserves. Since 2022, Deloitte has been conducting audits on USDC reserves. These efforts led to Circle becoming the first stablecoin issuer listed on the stock market last June."
The future goals are.
"Ultimately, our goal has always been the same: to eliminate friction in the financial system. We will continue to promote the global adoption of stablecoins and the expansion of supporting infrastructure. We aim to build a trusted and scalable platform that connects cryptocurrencies and traditional finance."
Korea is pushing for the legalization of won-based stablecoins, but there are significant objections that their usage is limited compared to the dollar.
"Stablecoins have the highest utility of all the currencies created so far. Just as the iPhone ushered in the smartphone era, a stablecoin moment is soon approaching the market. Moreover, what is crucial in all frameworks is global regulation and interoperability. Given these points, the introduction of won-based stablecoins could serve as a catalyst for Korea's technological advancement, economic growth, and financial innovation. As the industry matures, ongoing dialogue between regulators and stakeholders will lead to more prudent policies that harness the benefits of digital assets. This could position Korea at the forefront of fintech innovation while better protecting consumer interests."
The plans for market activities in Korea are.
"Korea is one of the countries with a dynamic digital asset market. It is assessed to also have a strong developer community and a forward-looking regulatory environment. We look forward to continuously collaborating with regulators, financial institutions, and partners to contribute to the advancement of Korea's digital financial environment. We see significant opportunities arising in Korea over time."
Plus Point
Hashed, a survey of Korean stablecoin investors on reasons for purchasing, including coin transactions and holding dollars.
Bithumb and Upbit listed USDT (Tether) in December 2023 and June 2024, respectively. USDC was listed in December 2023 and August 2024. Therefore, stablecoin transactions are currently possible through domestic virtual asset exchanges. Although it has been less than two years since stablecoins were listed on domestic exchanges, the daily trading volume of USDT as of April 1 reached $100 million (about 139.1 billion won) at Bithumb and $51 million (about 70.9 billion won) at Upbit, showing rapid growth. According to a survey conducted by Hashed Open Research targeting domestic stablecoin investors in February 2025, more than half (57%) of domestic investors reported buying stablecoins for the first time after stablecoins were listed on Upbit and Bithumb exchanges. In contrast, 43% of respondents indicated that they had purchased stablecoins through overseas exchanges or decentralized exchanges (DEX) prior to their listing on domestic exchanges, which is not a small number.
In a multiple-choice survey asking why they purchased stablecoins, the answer 'for coin transactions' was the most common at 60.7%. Though domestic exchanges generally trade cryptocurrencies in won, exchanges like Binance use USDT or USDC as the settlement currency when trading cryptocurrencies like Bitcoin. Following that, 'to hold dollars' was the second most cited response at 37.7%. Investors aiming to capitalize on the rise in the won-dollar exchange rate used to only trade dollars through banks, but since the emergence of dollar stablecoins, they can now easily secure and transfer dollars anywhere via domestic and international virtual asset exchange applications (apps). The third most frequently cited reason for holding stablecoins was to gain 'kimchi premium' arbitrage. The kimchi premium refers to the phenomenon where the prices of dollar stablecoins like USDT traded on domestic exchanges are higher than the won-dollar exchange rate. When a kimchi premium occurs, one could buy USDT on overseas exchanges and sell it on domestic exchanges to seek profits. According to Hashed Open Research, as of April 1, the won-dollar exchange rate was 1,472 won, while the price of USDT traded on Upbit and Bithumb exchanges was 1,484 won, reflecting a 12 won premium. In February 2025, when the kimchi premium significantly expanded, the price difference exceeded 120 won.