Upbit and Bithumb, which account for over 80% of Korean crypto trading volume, listed USDe on January 14. Ethena Labs developed the synthetic stablecoin to maintain dollar parity without traditional banking reserves, instead using derivatives positions and delta-hedging strategies. The alternative architecture addresses counterparty risk in reserve-backed stablecoins by trading that risk for smart contract risk—a tradeoff some Korean traders have embraced given the token’s rapid adoption. USDe mimics dollar exposure through perpetual futures positions, eliminating the banking intermediary while Circle and Tether continue to custody billions in fiat reserves, creating regulatory and operational dependencies.
USDe listings broaden dollar-pegged options beyond traditional USDC and USDT. Upbit organized its USDe promotion across three rounds starting January 17, distributing Ethena governance tokens to top traders, and the multi-phase approach keeps the listing visible in platform rankings for an extended period. The won-dollar exchange rate broke through 1,480 in mid-January, triggering a sharp acceleration in stablecoin activity, with CryptoQuant data showing USDT trading volume across five major Korean exchanges reaching 378.2 billion won, a 62% increase from January 1 levels. As the won loses purchasing power, Korean traders rotate into dollar-denominated assets to preserve wealth, using crypto platforms as the most accessible channel.
Traditional Korean markets have performed well during the same period, with the KOSPI index and precious metals reaching record highs in local currency terms, though gains largely reflect won devaluation rather than real asset appreciation. Crypto volumes in speculative tokens declined during the rally in traditional assets, creating revenue pressure on exchanges. Korbit, Coinone, Upbit, and Bithumb launched fee waivers and reward campaigns totaling 33,000 USDC weekly. Korbit eliminated trading fees for USD Coin (USDC) pairs on January 20, removing the primary friction point for traders seeking dollar exposure, paired with a three-month trading campaign. Users who generate at least 10 million won in weekly USDC volume qualify for a share of 25,000 USDC distributed proportionally based on trading activity, per Korbit’s announcement. Coinone launched a parallel program distributing 8,000 USDC weekly to active stablecoin traders, contributing to the overall 33,000 USDC weekly rewards across both Korbit and Coinone platforms.
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