Japan, South Korea lead Asia's local stablecoin push in 2025.

Asia laid the groundwork for non-USD stablecoins in 2025, as regulators, banks and crypto firms pushed thier own country local-currency stablecoins despite continued dominance of dollar-backed stablecoins.

Japan and South Korea led that shift in 2025, with both countries seeing notable stablecoin developments in the public and private sectors.

While U.S. dollar backed stablecoins such as USDT and USDC continue to dominate onchain liquidity, policymakers, banks & crypto firms across the region spent the year laying the groundwork for a more diversified stablecoin ecosystem, one that would no longer be solely anchored to the dollar.

From Tokyo to Seoul, regulatory initiatives and high profile launches have signaled a strategic shift toward non USD stablecoins, even as the market remains small in scale relative to dollarbacked stablecoins.

"What’s happening in Asia now is that policymakers are encouraging local currency stablecoin issuance to ensure their domestic financial systems aren't left behind as activity moves onchain. These moves are about diversifying options and offering credible alternatives where local currencies are more appropriate. But whether that ultimately shifts liquidity in a meaningful way remains to be seen." - Angela Ang, head of policy and strategic partnerships for APAC at TRM Labs.

Presently both the countries have launched their currency backer stablecoins to support their crypto ecosystem while safeguarding their interests.