Binance Stablecoins Quietly Influence National Currencies Through Hidden Leverage
A new analysis from the Bank of Korea reveals that Binance has become a hidden lever on national currencies, quietly influencing foreign exchange markets through its stablecoin impact. The study, published as an issue note in September 2026, found that when Binance lists fiat-stablecoin pairs, local stablecoin premiums drop by around 0.33 percentage points.
According to the researchers, this is because global market makers hedge their bets by selling local currency and buying dollars in FX markets, creating a connection between crypto demand and exchange rates. The study used data from 12 currencies with enough cross-exchange trading history, covering pair listings introduced between 2019 and 2025.
However, South Korea is an outlier, as it lacks a direct won-stablecoin pair, resulting in a higher local stablecoin premium of around 0.85 percentage points without significantly affecting the won-dollar exchange rate. In contrast, Brazil shows a smaller but still significant impact, with a 0.11-point premium increase correlated with roughly 0.12% depreciation of the real.
The study's authors recommend that Korea deepen FX liquidity and internationalize the won to better absorb market shocks, given the country's unique insulation from stablecoin-driven currency swings. They also note that this recommendation is not a long-term solution but rather a temporary condition, as wider access could eventually create the same kind of channel seen in Brazil and other markets.
Binance holds roughly 69% of all USDT and USDC deposits sitting on exchanges, giving it outsized influence over stablecoin flows. The study highlights the importance of understanding this mechanism to better manage risks associated with stablecoin adoption and FX liquidity.