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Stablecoins are usually framed as a dollar story, but the Bank of Korea’s research is a reminder that every dollar flowing into them has to come from somewhere. As adoption spreads beyond crypto-native users, the mechanics of stablecoin demand are starting to quietly reshape emerging market currencies too.
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In Today’s Edition:
**Headline:Stablecoins Can Weaken Local CurrenciesQuick Bites:Why is a Stablecoin Company Buying FarmlandYield of the Week:**Bitwise Premium RWA AUSD 15.00% APY
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HEADLINE
**State of play: **A Bank of Korea study found that dollar-backed stablecoins can push local currencies lower once global exchanges let investors buy them directly with fiat.
Researchers found local stablecoin premiums fell by 0.33 to 0.38 percentage points after Binance introduced fiat-stablecoin trading pairs.
Market makers supplying stablecoins tend to sell local currency and buy dollars to balance positions, creating a channel that affects exchange rates.
Won purchases of stablecoins hit $64B in the 12 months through June 2025, making Korea the largest local-currency stablecoin market in Asia-Pacific.
Korea showed no significant exchange-rate impact since it lacks a direct Binance won-stablecoin pair, with buying pressure instead raising its local stablecoin premium.
A one-standard-deviation rise in bitcoin-related Google searches was linked to a 0.118% depreciation of the Brazilian real in a separate weekly-data test.
**What’s Next: **The authors say Korea’s exposure could grow if rules later allow more corporate and foreign crypto participation, making deeper FX liquidity and broader international use of the won important buffers against future currency shocks.
**Why it Matters: **As stablecoin adoption grows, the study shows a direct mechanical link between crypto demand and traditional FX markets, meaning stablecoin flows could increasingly move real world exchange rates, not just crypto prices.
**Our Take: **Korea’s case is a useful warning sign precisely because it hasn’t happened yet. The country’s stablecoin appetite is already the largest in the region, so the moment a direct won-stablecoin pair exists, this mechanism could shift from theoretical to active.
QUICK BITES
Why is a Stablecoin companybuyingfarmland?Swiss stablecoin sandboxenterstesting phase, adds two new partners.Bank of KoreasaysDollar-backed stablecoins can push local currencies lower.
YIELD OF THE WEEK
The vaultaccepts AUSD deposits and lends against a diversified set of overcollateralized RWA collateral assets, with ~$8.25M in total deposits and ~$306.79k in available liquidity.Capital is deployed across PST/AUSD (~$3.40M, 98.85% utilization), PRIME/AUSD (~$2.58M, 94.01% utilization), and sUSDai/AUSD (~$2.25M, 95.00% utilization), all at near-full utilization.
Yield is generated from lending demand across RWA-collateralized markets, with a base vault APY of 6.79% boosted by 8.21% in AUSD incentives, net of a 0.39% management fee and 0% performance fee.
The vaultaccepts USDC deposits and exclusively supplies liquidity to Pendle PT collateral markets, enabling deeper USDC borrow liquidity for PT-looping strategies, with ~$55.4M in total deposits and ~$8.08M in available liquidity.Capital is primarily deployed into PT-reUSD-10DEC2026/USDC (~$32.1M, 93.23% utilization).
Yield is generated from PT-looping borrowing demand across curated Pendle markets, with a base vault APY of 9.53% boosted by 1.53% in PENDLE incentives, net of a 5% performance fee and 0% management fee.
The vaultaccepts USDC deposits on Monad and maximizes yield by integrating unique collateral assets across active Morpho lending markets, with ~$41.53M in total deposits and ~$4.75M in available liquidity.Capital is primarily deployed into aHYPER/USDC (~$26.24M, 90.83% utilization) and PT-USDat-14JAN2027/USDC (~$10.08M, 91.41% utilization), with remaining allocations across cbBTC, aHyperBTC, mHYPER, WBTC, and wstETH markets.
Yield is generated from lending demand across HYPER ecosystem and blue-chip collateral markets, with a base vault APY of 8.64% boosted by 0.80% in WMON incentives, net of a 5% performance fee and 0% management fee.
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