Welcome to the Asia Pacific Morning Brief—your essential digest of overnight crypto developments shaping regional markets and global sentiment. Grab a green tea and watch this space.
Korean investors shift from US tech to crypto stocks amid regulatory changes. KCMI urges fiscal law amendments for KRW stablecoins. SoftBank prepares PayPay’s potential $2B US IPO with major investment banks.
Korean Investors Shift to Crypto Stocks
South Korean retail investors are dramatically pivoting from US big tech to virtual asset-related stocks. Virtual asset-related shares surged from just 8.5% to 36.5% of top net purchases by June, according to the Korean Center for International Finance.
Net purchases of major US tech stocks plummeted from $1.68 billion monthly average to just $260 million in July. The strategic shift follows President Trump’s GENIUS Act, which establishes comprehensive regulatory guidelines for the rapidly expanding stablecoin industry.
Korean investors turned net sellers of overseas stocks since May amid stronger domestic market performance. Growing concerns about potential US tariff impacts may further dampen foreign investment appetite going forward.
For Stablecoins, Short-Term Bonds Are Necessary
The Korea Capital Markets Institute (KCMI) recommends amending fiscal law to enable short-term treasury issuance for KRW stablecoin reserves. KCMI is Korea’s leading capital market research organization that provides policy recommendations.
Major jurisdictions like the US and EU permit short-term treasuries as reserve assets under their regulatory frameworks. However, Korea’s National Assembly approval requirements currently hinder such flexible issuance mechanisms for government securities.
The proposal suggests shifting approval from total issuance to net increase basis, enhancing stablecoin stability. This change would also boost government funding flexibility and strengthen Korea’s short-term financial markets significantly.
SoftBank Eyes PayPay US Listing
SoftBank Group has strategically selected leading investment banks for PayPay’s potential US initial public offering. Goldman Sachs, JPMorgan Chase, Mizuho Financial Group, and Morgan Stanley will spearhead the comprehensive listing preparations.
The Japanese digital payments unit could go public as early as the fourth quarter of 2025. The highly anticipated offering may raise well over $2 billion in total proceeds from institutional investors.
However, final timing and offering size remain subject to prevailing market conditions and investor sentiment. All parties involved have declined to provide official comments on the strategic development.
APAC Morning Digest
MicroStrategy and Trump Double Down on Bitcoin Amid All-Time High Hopes: MicroStrategy and Trump Media are laying the groundwork for huge investments. The President’s media firm amended its Bitcoin ETF application in a latest SEC filing. MicroStrategy, for its part, made a relatively small purchase last week.
SEC Issues Waiver Fulfilling Key Demands of XRP Case: The SEC issued a waiver allowing Ripple to sell securities to private investors. This directly contravenes Judge Torres’ rulings in the XRP case’s lengthy cross-appeals process.
Terraform Labs Founder Do Kwon Will Plead Guilty to Fraud Charges: Do Kwon, founder of Terraform Labs, will plead guilty on several felony charges, including fraud, conspiracy, money laundering, and more.
Bitcoin Enters Space Tourism With Jeff Bezos: Blue Origin, Jeff Bezos’ private spaceflight company, will now accept payments in Bitcoin and other leading cryptoassets. Eligible tokens include ETH, SOL, USDT, and USDC.
NEOS Files to Create High Income Ethereum ETF: NEOS files to launch a “High Income” Ethereum ETF, using indirect ETP exposure to generate higher yields at an increased risk. The firm will create this opportunity through a system of puts and calls.
Ethereum Co-Founder Sees ETH Overtaking BTC in Market Cap Within a Year: Ethereum co-founder Joseph Lubin believes ETH could surpass Bitcoin’s market capitalization within the next year, citing increasing adoption by corporate treasury buyers and a maturing ecosystem he calls “digital oil” for the decentralized economy.
Paul Kim Contributed.
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