Welcome to the Asia-Pacific Morning Brief—an essential summary of overnight cryptocurrency developments that shape regional markets and global sentiment. Prepare your green tea and stay tuned.
Korean investors are moving from U.S. tech stocks to cryptocurrency stocks amid regulatory changes. KCMI urges fiscal law amendments for won-based stablecoins. SoftBank is preparing a potential $2 billion U.S. IPO for PayPay with major investment banks.
Korean Investors Shift to Coin Stocks
Korean retail investors are rapidly switching from U.S. large-cap tech stocks to virtual asset-related stocks. Virtual asset-related stocks surged from 8.5% of top net purchases to 36.5% by June, according to the Korea International Finance Center.
Net purchases of major U.S. tech stocks plummeted from a monthly average of $1.68 billion to $260 million in July. This strategic shift follows the GENIUS Act by the Trump administration, establishing comprehensive regulatory guidelines for the rapidly expanding stablecoin industry.
Korean investors have become net sellers of foreign stocks since May, driven by strong domestic market performance. Concerns about U.S. tariff impacts could further dampen foreign investor appetite.
Stablecoins Require Short-Term Bonds
The Korea Capital Market Institute (KCMI) recommends amending fiscal laws to enable short-term government bond issuance for won stablecoin reserves. KCMI is Korea's leading capital market research institution providing policy recommendations.
Major jurisdictions like the U.S. and EU allow short-term government bonds as reserve assets. However, Korea's parliamentary approval requirements currently hinder flexible government security issuance mechanisms.
The proposal suggests transitioning approval to net increase basis from total issuance, which would enhance stablecoin stability. This change would also increase government funding flexibility and significantly strengthen Korea's short-term financial market.
SoftBank Pursues PayPay U.S. Listing
SoftBank Group has strategically selected major investment banks for PayPay's potential U.S. listing. Goldman Sachs, JP Morgan Chase, Mizuho Financial Group, and Morgan Stanley will lead the comprehensive listing preparation.
Japan's digital payment sector could be listed in early Q4 2025. This anticipated listing could generate over $2 billion in revenue from institutional investors.
However, the final timing and listing scale may vary depending on market conditions and investor sentiment. All parties involved have declined official comments on strategic developments.
APAC Morning Digest
MicroStrategy and Trump Double Down on Bitcoin: MicroStrategy and Trump Media are laying groundwork for massive investments. The president's media company recently modified its Bitcoin ETF application in SEC filings. MicroStrategy made relatively small purchases last week.
SEC Issues Exemption Meeting Key XRP Case Requirements: The SEC issued an exemption allowing Ripple to sell securities to private investors, directly contradicting Judge Torres's ruling during the long appeals process.
Terraform Labs Founder Do Kwon Expected to Plead Guilty to Fraud Charges: Terraform Labs founder Do Kwon is expected to plead guilty to multiple felony charges including fraud, conspiracy, and money laundering.
Bitcoin Enters Space Tourism with Jeff Bezos: Jeff Bezos's private space flight company Blue Origin will now accept payments in Bitcoin and other major cryptocurrencies. Available tokens include ETH, SOL, USDT, and USDC.
NEOS Applies to Create High-Yield Ethereum ETF: NEOS has applied to launch a "high-yield" Ethereum ETF using indirect ETP exposure, to be created through a put and call system.
Ethereum Co-Founder Expects ETH to Surpass BTC Market Cap Within a Year: Ethereum co-founder Joseph Lubin believes ETH could exceed Bitcoin's market cap next year, citing increasing corporate finance buyer adoption and a mature ecosystem he calls "digital oil".
Contributed by Paul Kim.
