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Bank of Korea Warns Stablecoin Trading Could Impact FX Market Volatility
Commercial Services · Financial Publishing/Services · yonhap_finance · 2026-09-03
The Bank of Korea suggests that stablecoin trading on overseas exchanges, involving global intermediaries, could significantly influence foreign exchange rates.
What Happened
Research Context: The Bank of Korea (BOK) released a report analyzing how the trading of dollar-pegged stablecoins against local currencies on overseas exchanges can link to the foreign exchange market. The study focuses on the role of global intermediaries in shaping market dynamics.
Market Structure Impact: On global exchanges, liquidity providers and professional market makers participate in stablecoin trading, which tends to narrow the premium between stablecoins and spot exchange rates. This participation creates a mechanism where shocks in stablecoin demand can directly affect currency exchange rates.
FX Correlation: The study found that for currencies supported on these exchanges, buying pressure on stablecoins often leads to a depreciation of the local currency. In contrast, for currencies like the Korean won, which are not supported on these platforms, the impact of crypto market volatility on exchange rates remains limited.
Policy Implications: The BOK warned that as the domestic crypto market structure evolves, the linkage between stablecoin and FX markets could strengthen. The central bank emphasized that internationalizing the won and improving FX market structure should be treated as tasks integrated with crypto regulatory reform.