Stablecoin Growth May Pressure Korean Bank Deposits and Fee Income

In Seoul, Yonhap News Agency reporter Lee Do-heun reported that an analysis found stablecoin growth could affect the revenue structure of South Korea’s banking sector. The key concern is that if stablecoins expand as a means of payment and value storage, bank deposits could flow out and fee income from existing financial transactions could decline. Because domestic banks rely on deposit-based funding and transaction fees as major revenue foundations, wider stablecoin use is being cited as a potential burden on their overall earnings model. The report focused on the possible effects of this growth on banks. Source: yna.co.kr