The Bank of Korea published an issue note finding that direct trading between fiat currencies and U.S. dollar stablecoins on Binance strengthens both price integration with foreign exchange markets and the transmission of stablecoin demand shocks to exchange rates. The listings allow global intermediaries active in both markets to supply stablecoins, arbitrage price gaps and manage resulting fiat currency positions through foreign exchange transactions. Following pair listings, local stablecoin premiums declined by an estimated 0.33 to 0.38 percentage points, while higher local premiums relative to Binance prompted stablecoin inflows from the global exchange. Stablecoin demand pressure was also associated with local currency depreciation after pairing. In Korea, where Binance does not offer a Korean won stablecoin pair, buying pressure primarily raised stablecoin premiums and had no significant exchange-rate effect. The study concludes that greater corporate and foreign participation could strengthen these linkages in Korea, warranting coordinated consideration of digital asset regulation, Korean won internationalization and deeper foreign exchange market liquidity.

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