Crypto
Stablecoins Create Bridge Between Crypto and Forex Markets, Study Finds
A new study by the Bank of Korea has found that stablecoins in US dollars can create a bridge between the crypto market and traditional forex.
The research analyzed 12 currencies and their introduction to stablecoin pairs on Binance between 2019 and 2025. The study discovered that when local currencies are used to buy USDT or USDC, the pressure from crypto trading can be transmitted to the foreign exchange market through the actions of market makers.
The key finding is that the structure of the market determines whether the pressure remains confined to the local price of the stablecoin or is transformed into actual dollar demand when global intermediaries with access to both markets intervene.