Circle Targets South Korea to Challenge Tether Stablecoin Dominance

Circle is expanding its stablecoin operations in South Korea to challenge the market dominance of Tether through a dual strategy centered on trading and payments. The push comes as Circle seeks to increase the adoption of its USD Coin (USDC) in one of the world’s largest cryptocurrency markets.

According to industry data reported by UPI, Tether currently controls more than 80% of stablecoin transactions within South Korea and maintains a global market share of over 60%. In contrast, USDC holds a significantly smaller portion of the South Korean market, estimated at approximately 10%, though some reports indicate the asset has recently surpassed that threshold on major exchanges such as Coinone and Korbit.

Strategic Partnerships and Exchange Integration

Circle CEO Jeremy Allaire visited South Korea in April 2026 to sign agreements with local fintech firms and cryptocurrency exchanges to improve liquidity and accessibility for USDC. As part of these efforts, Circle has engaged with three of the country’s major exchanges: Upbit, Bithumb, and Coinone.

In collaboration with Dunamu, the operator of Upbit, Circle is implementing initiatives focused on user education, transparency, and regulatory compliance. Simultaneously, Circle and Bithumb have agreed to explore stablecoin technologies and the integration of multi-chain digital asset infrastructure.

To drive retail trading volume on the Coinone platform, Circle is utilizing promotional tactics including airdrops and fee discounts.

Expansion into Payment Infrastructure

Beyond exchange-based trading, Circle is promoting its proprietary network to facilitate cross-border transfers and real-world payments. This effort includes a partnership with Hecto Financial, a South Korean fintech firm.

Analysts suggest this approach is designed to compete with Tether not only in trading volume but also in practical financial use cases. USDC’s structure, which is backed by U.S. Treasury assets and cash and includes regular disclosures, is intended to make the stablecoin more attractive to institutional financial entities.

Tether’s Local Response

Tether is also accelerating its local operations to maintain its lead. The issuer of USDT has launched a large-scale recruitment campaign in South Korea, specifically targeting roles in blockchain investigations and government relations.

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Reporting from Financial News indicates that Tether has hired Korean employees to serve as Expansion Managers to address local issues directly. This marks a shift from previous operations where Tether employees based in regions such as Venezuela managed Seoul-related matters remotely.

Regulatory Landscape and Legislative Pressure

The competitive surge by both firms coincides with South Korea finalizing the second phase of its cryptocurrency-related legislation. Both Circle and Tether are positioning themselves ahead of the Digital Asset Basic Act, which may require overseas stablecoin issuers to establish a formal domestic presence to ensure local accountability.

Further regulatory pressure exists in the form of the Act on the Issuance and Distribution of Value-Stabilized Digital Assets, proposed by Andogeol, a member of the Democratic Party. This proposed legislation would grant the Financial Services Commission the authority to order virtual asset business operators to suspend trading support for foreign-issued stablecoins under specific conditions.

Industry observers noted that Tether’s expansion in Asia may be influenced by the U.S. Stablecoin bill, known as the Genius Act, which makes it unlikely for Tether to receive approval from the U.S. Government.

The shift toward institutional integration is further supported by South Korea’s 2026 Economic Growth Strategy. This environment has led Circle to explore the feasibility of integrated cross-border payment solutions and the potential for a stablecoin pegged to the Korean won.