Key facts
- South Korea experienced net stablecoin outflows of $367 million in June.
- This marks 18 consecutive months of net stablecoin outflows from South Korea.
- Demand for offshore derivatives is a key driver of these outflows.
- Demand for tokenized real-world assets (RWAs) is a key driver.
- Demand for DeFi products unavailable domestically is a key driver.
South Korea recorded net stablecoin outflows amounting to $367 million during the month of June. This figure represents the eighteenth consecutive month that the nation has experienced such outflows. The primary drivers behind this sustained trend are identified as domestic investor demand for offshore derivatives, tokenized real-world assets (RWAs), and decentralized finance (DeFi) products. These financial instruments and investment avenues are reportedly unavailable within South Korea's domestic market, prompting investors to seek them elsewhere. The ongoing outflow suggests a persistent search for alternative financial instruments and investment opportunities beyond the confines of the South Korean financial landscape. This pattern highlights a demand for diversification and access to global financial markets among South Korean investors, particularly in areas like digital assets and complex derivative products.