Bank of Korea Examined Stablecoin Links to the Foreign Exchange Market

Stablecoins and the foreign exchange market were linked by the Bank of Korea in a research study published on September 3, 2026. The central bank analyzed links between dollar stablecoins and local currency exchange rates after fiat currency–stablecoin trading pairs were introduced on Binance.

According to the Bank of Korea’s findings, among currencies with such a pair, a higher stablecoin premium was associated with a statistically significant weakening of the respective local currency against the US dollar. However, the paper does not mean that every purchase of a dollar stablecoin automatically leads to a decline in the domestic currency’s exchange rate.

Stablecoins and the foreign exchange market: Why trading pairs matter

The study, titled Stablecoin–FX Linkages: Evidence from Fiat–Stablecoin Pair Listings on a Global Exchange, examines conditions after pairs between local currencies and stablecoins were listed on the global Binance exchange. The stablecoin premium measures the deviation of a stablecoin’s price from its reference value in a given local market environment.

When a direct pair exists, the BOK says stronger buying pressure for a dollar stablecoin may be reflected not only in the premium but also in the foreign exchange market. In the cases analyzed, a higher premium was therefore statistically associated with a weaker local currency against the dollar.

The research distinguishes this mechanism from conditions in markets where the relevant fiat–stablecoin pair is unavailable. According to the findings, the trading structure is important in determining where demand pressure appears.

Won showed no significant exchange-rate effect in the setting studied

For currencies without the relevant trading pair, including the South Korean won in the setting studied, the BOK found no significant effect of buying pressure on the foreign exchange rate. The pressure was reflected primarily in an increase in the stablecoin premium.

However, this does not mean that the won is permanently insulated from similar transmission. The Bank of Korea said the link could strengthen in South Korea if the market structure changed. It cited broader participation by companies and foreign investors as examples.

Why dollar stablecoins are relevant to the foreign exchange market

Their demand may also have a foreign exchange dimension under certain conditions. If the domestic crypto market is directly connected to global market makers through fiat currency–stablecoin pairs, a possible channel for cross-border capital flows emerges.

The BOK’s finding therefore supports regulators’ concerns that demand for dollar-backed stablecoins may, under certain market conditions, also transmit pressure to the local currency’s exchange rate. The topic concerns trading rules, foreign exchange liquidity, and stablecoin regulation design.

The study does not announce a new regulatory measure or intervention by the Bank of Korea in the market. It is a research analysis that the central bank presents as a basis for policymaking.

What will be important to watch

• whether the Bank of Korea or other South Korean authorities present specific proposals for stablecoins and access by foreign or corporate participants to crypto markets,
• whether independent research confirms the scale of the observed effect on other exchanges and for additional currencies,
• changes in the availability of fiat currency–stablecoin trading pairs on major global exchanges.

The results cannot be applied without further analysis to all currencies, countries, or trading platforms, nor can they be used to infer the won’s future exchange-rate performance. They do show, however, that the specific structure of the crypto market may be important when examining the relationship between stablecoins and foreign exchange rates.

Verified and updated: 09/06/2026 15:21