Seoul, South Korea – The stablecoin market, currently dominated by U.S. dollar-pegged assets, is poised for a significant shift as local-currency stablecoins gain traction, particularly across Europe and Asia. This evolution is expected to culminate in a multi-currency, programmable payment layer, according to industry observations.
The current landscape sees approximately 98 percent of stablecoins linked to the U.S. dollar, with major players like Tether (USDT) and USD Coin (USDC) holding substantial market share. However, this long-standing dominance is beginning to change as regions seek to integrate their own fiat currencies into the digital asset ecosystem.
A notable development in this trend is the partnership between the Avalanche blockchain and South Korean fintech firm Travel Wallet. Travel Wallet CEO Kim Hyung-woo recently highlighted the growing momentum, stating, "as payments take center stage, we’ll see more local-currency stablecoins emerge across Europe and Asia." This collaboration aims to launch a Korean Won-pegged stablecoin, leveraging Avalanche's smart contract capabilities to facilitate programmable payments.
This move aligns with a broader industry push towards "programmable money," where transactions can be automated and executed with predefined conditions on blockchain networks. Companies like Mastercard and Circle are actively investing in infrastructure to support multi-token networks, enabling faster, cheaper, and more efficient cross-border payments. The vision is for money to move seamlessly, much like data, across digital rails.
The emergence of these local-currency stablecoins and programmable payment layers is expected to reduce reliance on traditional banking intermediaries, lower transaction costs, and enhance the speed of international remittances and business-to-business settlements. This strategic shift could redefine global financial infrastructure, offering greater flexibility and efficiency for users worldwide.