Kaia (KAIA) traded at 67 won on the Korean won market of domestic virtual asset exchanges, down 4.56% from the previous day, while 'The Seoul Standard' report released by Kaia sheds light on institutional changes in Korea's digital asset market and the task of establishing a foundation for a won-based stablecoin.

Kaia's marketing team presented the report on September 27, citing △institutional entry into the virtual asset market △the establishment of a tokenized securities framework △non-dollar stablecoins, and △real-world asset (RWA) tokenization as key factors of change in the Korean market.

■ Absence of Won-Based Stablecoins, Demand Leaking to Overseas Dollar Tokens

The core problem identified in the report is the gap between domestic stablecoin demand and the lack of a won-based institutional framework to accommodate it. Kaia explained that in the absence of a regulated won-based stablecoin, demand is flowing into overseas dollar tokens.

According to Kaia, the scale of digital asset transfers from domestic exchanges to overseas destinations in the first quarter of 2025 was approximately $40.6 billion, of which stablecoins accounted for about $19.5 billion. Kaia analyzed that the weakness of the won increased demand for dollar-denominated assets. The report also suggested that the spread of dollar stablecoins into domestic payment and settlement systems should be examined from the perspective of monetary sovereignty.

■ 32% of the Population, Structural Characteristics of a Retail-Centered Market

This demand stems from the characteristics of the Korean market, where retail investors account for a large share. Kaia explained that while Korea was proactive in adopting blockchain technology, it long maintained restrictions on participation in the digital asset market, resulting in a retail-centered market with limited institutional participation.

According to the report, at the beginning of 2025, the number of domestic virtual asset holders exceeded 16 million, accounting for about 32% of the total population. Kaia also noted that the Korean won is the second most actively traded currency in trading pairs after the dollar.

However, changes have appeared in retail investors' fund flows. The report stated that as of February 2026, the value of virtual assets held at domestic exchanges had decreased by roughly half to approximately 60.6 trillion won (about $44 billion). It cited falling virtual asset prices and the movement of individual funds into a rising stock market as the background.

■ Institutional Participation Allowed, Tokenized Securities Act Passed... Institutional Framework Underway

Kaia assessed that the retail-centered market structure began to change with institutional participation and regulatory reform. The report described the implementation of new regulations in January 2026 allowing institutional market participation as a shift from the existing trend.

Institutional discussions are divided into two tracks. Tokenized securities are linked to amendments to the Capital Markets Act and the Electronic Securities Act, while stablecoins and digital asset issuance were proposed as subjects of regulation under the Digital Asset Basic Act. According to Kaia, the tokenized securities-related amendment passed the National Assembly in January 2026, and the Digital Asset Basic Act was under discussion in the National Assembly at the time of the report's release.

The tasks emphasized by Kaia are expanding institutional participation and establishing an institutional foundation for a won-based stablecoin. The report reflects the view that market changes lead not only to broader participation but also to the choice of currency used for asset holding and trading.

[This article is based on a report released by Kaia on September 27, 2026. The figures and institutional descriptions in the report are as of the time of release, and market prices may vary depending on the time of aggregation. Kaia's analysis and forecasts may not match actual results and do not guarantee investment returns. Virtual assets are high-risk assets with high price volatility, and investment decisions and responsibility rest with the investor. This article was written with the assistance of AI.]