The Korean won is the second most traded currency in the digital asset space, behind only the dollar and its stablecoins.
$KRW pairs are roughly 30% of global spot volume.
None of that liquidity can work as collateral onchain, because there is no legally recognized won stablecoin to settle in.
The liquidity is there, but regulation still hasn't caught up.
The tokenized securities framework passed in January 2026 and takes effect in February 2027. The Digital Asset Basic Act, the law that would license a won stablecoin, is still in committee, held up on issuer eligibility.
The cost? Roughly KRW 14.92 trillion, about $10.4 billion, in net stablecoin outflows over eighteen consecutive months.
Regulatory clarity turns a won stablecoin from a payment instrument into collateral. Collateral feeds lending markets and tokenized asset settlement. That circuit mobilizes the stock of retail and corporate won deposits sitting inert today. The money that already left is a separate story.
That mechanism is the spine of the joint RedStone x
@KaiaChain report, out today: The Seoul Standard.
It covers Korea's opening against Hong Kong, Japan and Singapore, what the new laws require of institutions, and three scenarios with dated triggers plus a sourced risk register.
Full report below