Asia’s Banks Adopt Stablecoins to Combat Deposit Flight
Market Overview
Stablecoins are reshaping cross-border finance in Asia, with banks in Korea, Japan, and Hong Kong exploring local-currency stablecoins as a defensive measure against deposit flight.
- Asian banks recognize stablecoins like USDT and USDC for their potential to mitigate transaction revenue loss.
- Korean banks, including KB Kookmin and Shinhan, are forming a consortium to launch a Korean won stablecoin by 2026.
- Japanese banks MUFG, SMBC, and Mizuho are piloting yen-pegged stablecoins for trade finance optimization.
- Hong Kong's Bank of East Asia is testing USD and HKD stablecoin settlement networks.
- Payment service providers (PSPs) are shifting to stablecoins, with increased demand for efficient wallets.
- Stablecoins account for approximately half of Fireblocks' transaction volume, highlighting their growing importance.
- Tether's USDT leads in emerging markets, while USDC is gaining traction in regulated hubs like Singapore.
Bakkt's Funding Plans
Bakkt Holdings (NYSE: BKKT) plans to raise $1 billion to acquire bitcoin, as detailed in an SEC filing.
- The funds will come from various securities, including stock and debt offerings.
- This move aligns with a trend of companies adding BTC to their balance sheets amid increasing corporate treasury strategies.
- Bakkt has recently faced challenges, losing two major clients, impacting its revenue from loyalty and crypto services.
- The company is also considering the sale or wind-down of its loyalty division to refocus on crypto payments and trading infrastructure.
Market Movements
- BTC: Bitcoin remains steady above $107K ahead of a significant $40B options expiry on Deribit.
- ETH: Ethereum trades at $2,420, testing resistance levels with potential breakout targets at $2,800 or $4,000.
- Gold: Gold dipped to $3,331 amid conflicting economic data affecting market sentiment.
- Nikkei 225: Anticipated gains in Asia-Pacific markets following Wall Street's recovery.
- S&P 500: The index rose 0.8%, nearing a record high driven by optimism and tariff concerns easing.