Nikolas Sargeant
Trust Wallet, a decentralized crypto wallet backed by former Binance CEO CZ, is experiencing rapid user growth in regions like Africa and South Asia, where stablecoin demand, especially for USDC, is rising. Despite market fluctuations, the platform maintains 1-2 million downloads weekly.
During Korea Blockchain Week 2024, Trust Wallet CEO Eowyn Chen noted that users in these regions are turning to crypto wallets for financial stability amid volatile local currencies, highlighting the increasing role of decentralized wallets in uncertain economic conditions.
Stablecoins Offer Wealth Protection Amid Inflation
In regions where banking infrastructure is underdeveloped, Chen emphasized that crypto wallets play a crucial role in enabling users to manage their finances independently. Stablecoins, tied to the US dollar, allow users to protect their wealth from inflation and currency depreciation, providing a financial safeguard.
Over $8 billion in stablecoins, predominantly USDC, is being held in Trust Wallet. According to Chen, users in these regions view decentralized wallets as a secure method to store their assets.
South Korea’s Market: DeFi-Engaged, FOMO-Driven
Shifting to the South Korean market, Chen described it as highly active in cryptocurrency trading and decentralized finance (DeFi). However, she also mentioned that the market faces challenges due to local regulations and competitive dynamics.
“Korea’s market demands localized services, from language support to user interface enhancements. It’s also very FOMO-driven, with major product launches by local companies triggering widespread adoption,” Chen explained.
She further noted that partnerships between major South Korean telecom companies, like SK Telecom, and blockchain firms could boost interest in wallet-as-a-service (WaaS) offerings. This could potentially reshape the market.
Web3 Wallet Adoption Among South Korean Corporations
David Kim, a senior engineer at Trust Wallet, shared insights on how South Korean conglomerates are beginning to explore the Web3 space. Companies like Line, Naver, Kakao, and SK Telecom are recognizing the importance of Web3 wallets for future success.
However, many of these corporations are still in the early stages of integrating Web3 solutions. Some are forming alliances, such as the collaboration between Ahn Lab and SK Telecom, which have merged Web3 products to appeal to more users.
South Korea’s Web3 Sector Still CEX-Dominated
Despite growing interest in decentralized finance, Kim highlighted that South Korea’s Web3 market is still predominantly focused on centralized exchanges (CEX). A significant portion of retail user funds remains concentrated on CEXs, with only a small share involved in DeFi.
Kim noted a shift in institutional engagement with Web3, with more serious consideration from South Korean corporations compared to the previous year. This change may have been influenced by the recent approval of Bitcoin and Ethereum ETFs in the U.S.
