South Korean Investors Buy Stablecoin Firms

According to a report by the Korea Center for International Finance, South Koreans investing in overseas stocks are increasingly shifting their focus to cryptocurrency-related stocks, especially stablecoins.

From January to April, purchases of shares of major U.S. tech companies by Korean private investors fell from an average monthly amount of $1,68 billion to $440 million in May. They fell to $670 million in June and $260 million in July, according to Yonhap News.

Investments in virtual assets, especially stablecoin-related stocks, have increased following the passage of the GENIUS Act in the United States, the researchers wrote.

US President Trump signed the GENIUS Stablecoin Act, after which local investors increased their investments in digital asset stocks from 8,5% in January to 36,5% in June.

In response, South Korea’s Financial Supervisory Authority in July instructed local asset managers to «not excessively include» crypto stocks like Coinbase and Strategy in their portfolios. ETF.

Because of this, the current reorientation of South Korean investors is mainly limited to stablecoins. Now, several South Korean banks are planning to invest in stablecoins. For example, Kakao Bank has announced plans to issue this year stablecoin, backed by Korean won.

Source