Asian Banks Embrace USDT and Stablecoins to Counter Deposit Erosion

In a strategic MOVE to combat declining deposit bases and lost transaction revenue, major Asian financial institutions are increasingly adopting stablecoins like USDT and USDC. While global attention remains focused on U.S. regulatory debates and Circle's IPO, regional banks in countries such as South Korea are quietly integrating USD-pegged tokens into their cross-border financial infrastructure. This shift highlights the growing institutional acceptance of stablecoins as a viable solution for modern banking challenges.

Asia's Banks Turn to Stablecoins to Combat Deposit Flight

Asian financial institutions are quietly embracing stablecoins as a strategic defense against eroding deposit bases and lost transaction revenue. While U.S. regulators debate the GENIUS Act and Circle's IPO dominates headlines, regional banks are deploying USD-pegged tokens like USDT and USDC in cross-border financial infrastructure.

Major Korean lenders including KB Kookmin and Shinhan are collaborating on a won-denominated stablecoin initiative targeting 2026, responding to surging demand for dollar-linked alternatives. Japanese megabanks MUFG, SMBC and Mizuho are similarly testing yen-pegged solutions for trade finance efficiency.

"Banks face existential risks if they ignore this shift," said Fireblocks' Asia head Amy Zhang, noting institutions fear becoming obsolete if they fail to custody stablecoin reserves. The quiet adoption marks a tectonic shift in regional finance - where crypto rails increasingly underpin traditional banking operations.

Bybit Expands Crypto Access with Multi-Currency Credit Card Purchases and Cashback

Bybit, the world's second-largest cryptocurrency exchange by trading volume, has introduced a limited-time initiative allowing users to purchase digital assets using over 25 local fiat currencies. The move aims to democratize access to crypto by simplifying the onboarding process for global users.

The platform now supports one-click purchases of major cryptocurrencies like BTC and ETH via Visa or Mastercard, with real-time currency conversion and cashback rewards of up to 10 USDT. New users receive an additional 5 USDT bonus for first-time transactions in newly supported currencies.

Supported currencies include emerging market options such as Pakistan's PKR, Argentina's ARS, and Angola's AOA, reflecting Bybit's strategic focus on underserved markets. The exchange requires only basic identity verification, though European Economic Area customers are excluded from the offer.

Tether’s Liquidity Strategies Under Scrutiny Amid $2 Billion Unissued USDT and Regulatory Pressure

Tether’s USDT, the linchpin of the crypto market with a $157 billion market cap, faces renewed scrutiny as blockchain data reveals a $2 billion tranche of "authorized but not issued" USDT on the Tron network. Analysts speculate this reserve could be deployed to absorb sell-side pressure, but the opacity surrounding Tether’s reserves—coupled with its $18.5 million 2021 settlement for misleading disclosures—fuels concerns about systemic risk.

The European Union’s MiCA regulations are tightening the screws on stablecoin issuers, amplifying pressure on Tether to deliver transparent audits. Market participants recall the firm’s history of reserve discrepancies, with skeptics warning that unbacked issuance could destabilize USDT’s peg during volatile redemption waves.