Fiat-backed stablecoins have recently traded at steep premiums on South Korean virtual asset exchanges, according to ChainCatcher. JPYC, a yen-linked stablecoin, rose as high as four times its reference price after listing. EURC, a euro stablecoin, surged more than 400% in a single day on Bithumb, while PYUSD, a U.S. dollar stablecoin, also showed a notable premium.
The reported moves were attributed to thin circulating supply during the early listing stage combined with concentrated buying, rather than any issue tied to issuer reserves. Industry participants said reserve backing alone cannot prevent price distortion in the secondary market.
They called for South Korea to build supporting mechanisms at the design stage of a won-denominated stablecoin framework, including safeguards for initial circulating supply, market maker and liquidity provider arrangements, disclosure of price deviation rates, and restrictions on market orders.
Fiat-backed stablecoins have recently shown sharp price dislocations on South Korean virtual asset exchanges, according to ChainCatcher.
Among the cases cited, the yen-linked stablecoin JPYC climbed to as much as four times its reference price after listing. The euro stablecoin EURC jumped more than 400% in a single day on Bithumb. The U.S. dollar stablecoin PYUSD also traded at a visible premium.
The report said the swings were driven by limited circulating supply in the early stage after listing, combined with concentrated buying, and were unrelated to the issuers’ reserve assets.
Industry participants said reserves alone cannot stop price distortion in the secondary market. As South Korea considers the design of a won-based stablecoin framework, they called for parallel measures including safeguards for initial circulating supply, market maker (MM) and liquidity provider (LP) mechanisms, disclosure of price deviation rates, and limits on market orders.
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