These regions are seeing a surge in interest as users seek access to stablecoins.
Trust Wallet, a decentralized crypto wallet backed by former Binance CEO CZ (Changpeng Zhao) is experiencing user growth, particularly in developing regions like Africa and South Asia.
These areas are seeing a surge in interest as users seek access to stablecoins like USDC for financial security and stability, Eowyn Chen, the CEO of Trust Wallet told CryptoNews.
In a recent interview during Korea Blockchain Week 2024 (KBW), Chen shared insights on this growing trend and the broader dynamics of the cryptocurrency market. The firm remains backed by CZ despite his departure from Binance and four month stint in prison.
Based in Dubai, Chen claims that the platform consistently receives 1-2 million user downloads per week, even in the face of market fluctuations.
According to Chen, this gradual adoption shows how important on-chain wallets are becoming, especially in areas where traditional financial systems might not be as reliable or easily accessible.
Users in these regions are using cryptocurrency wallets as a safe haven from volatile local currencies in addition to using them for asset management.
“Many of our users in Africa and South Asia are looking for security and stability in their financial holdings,” said Chen.
“As a result, we’ve seen over $8 billion in USD stablecoins, particularly USDC, being held in Trust Wallet. People need a secure, accessible way to store their assets, and decentralized wallets are providing that solution,” explains the CEO.
Stablecoins Help Users to Protect Wealth From Inflation
Chen pointed out that cryptocurrency wallets offer a crucial service, allowing users to manage their money independently of conventional financial institutions in emerging markets, where the banking infrastructure is frequently less developed.
Users of stablecoins, which are backed by the US dollar, can safeguard their wealth against inflation and currency depreciation.
South Korean Market Engaged in DeFi, FOMO-Driven
Chen turned his attention to the South Korean market and revealed that the people there are very active in both decentralized finance (DeFi) and cryptocurrency trading.
She did, however, also note that barriers to broad adoption exist due to regional laws and market conditions.
“Korea is a highly competitive market, with strong demand for local language support, UI/UX optimization, and high-risk, high-reward investment opportunities,” Chen said. “It’s also a FOMO-driven market, where major launches by local companies can drive broader adoption.”
Chen went on to say that if a big South Korean telecom company, such as SK Telecom, teams up with blockchain startups like Aptos to introduce their own wallet, it might create a surge of interest in wallet-as-a-service (WaaS) offerings in the nation and further disrupt the market.
Senior smart contract engineer David Kim of Trust Wallet gave CryptoNews some insight into how big South Korean companies are experimenting with Web3.
Large companies like Line, Naver, Kakao, SK Telecom, SK Planet, Ahn Lab, and Bithumb are realizing the value of Web3 wallets in their strategies, according to Kim during an interview at KBW24.
“These companies are starting to understand that Web3 wallets are essential for them to succeed in the space,” Kim said.
Many Korean Firms Struggling to Integrate Web3 Solutions
He did, however, note that the majority of them are still in the early phases of identifying the best Web3 touchpoints and strategies.
Many are finding it difficult to properly incorporate Web3 solutions into their current services while they figure out how to modify their business models to make room for decentralized technologies.
A few businesses have chosen to team up. For instance, Ahn Lab and SK Telecom combined their Web3 offerings to produce a more user-friendly solution. These partnerships are thought to be essential to speeding up South Korea’s adoption of Web3 technologies.
South Korean Web3 Market CEX-Focused
Kim pointed out that the South Korean Web3 market is still primarily concentrated in centralized exchanges (CEX) despite these developments.
Kim noted the current disparity in the market, saying, “A lot of retail users’ funds are concentrated on CEXs, while only a small portion is in the DeFi sector.”
Kim also participated in panel discussions at KBW2023, where executives from big businesses like Aptos and SK Telecom (SKT) talked about their Web3 strategies.
Kim stated that the Executive Vice President of SKT provided insightful information about the company’s plans to incorporate Web3 into their mobile payment services. She underlined that although user experience (UX) is crucial, users will not switch from Web2 to Web3 because of UX alone.
“Comfortable and easy Web3 UX isn’t enough to migrate Web2 users to Web3,” Kim said. Instead, in order to justify the shift, users require concrete incentives like awards, points, and useful advantages.
Kim also mentioned that, in contrast to last year’s more circumspect approach, South Korean institutions are now taking Web3 much more seriously.
He speculated that the acceptance of Bitcoin and Ethereum ETFs in the US market may have contributed to this renewed interest.