Net Stablecoin Outflows From Korean Exchanges Reach $367 Million in June as Offshore Derivatives Trading Expands

Net stablecoin outflows from South Korean cryptocurrency exchanges to overseas platforms reached several hundred billion won a month, Yonhap News reported on August 3.

Data submitted by the Financial Supervisory Service to lawmaker Lee Jong-wook of the National Assembly’s Strategy and Finance Committee showed that stablecoin transfers from the country’s five largest crypto exchanges to overseas exchanges totaled 2.7625 trillion won ($1.81 billion) in June. The five exchanges are Upbit, Bithumb, Coinone, Korbit and Gopax.

Stablecoin inflows from overseas exchanges to domestic platforms came to 2.2022 trillion won ($1.44 billion) during the same period, leaving net outflows at 560.3 billion won ($367 million).

That was roughly on par with South Korean investors’ net purchases of overseas stocks in the same month. Korea Securities Depository data showed net purchases of foreign stocks in June totaled $472.54 million, which converts to about 722 billion won at the average won-dollar exchange rate of 1,527.95 in the month. Net stablecoin outflows were equivalent to about 77.6% of that amount.

In the past, net stablecoin outflows were around 20% of South Korean investors’ net purchases of overseas stocks. More recently, that share has risen sharply as appetite for overseas equities has cooled while stablecoin outflows have continued steadily.

Stablecoin outflows to overseas exchanges exceeded inflows for 18 consecutive months from early last year, when the data began to be compiled, through June this year. Overseas stocks, by contrast, recorded net selling in some periods.

Industry participants say most of the stablecoins moved abroad are used for derivatives trading not available on domestic exchanges. Overseas platforms have recently listed not only Bitcoin futures but also spot and futures products tied to major South Korean stocks including Samsung Electronics, SK Hynix and Hyundai Motor in a push to attract Korean investors. Demand for dollar-based real-world assets, decentralized finance and staking services is also cited as a reason funds are moving to overseas exchanges.