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Onigiri Weekend Digest: Institutional Lens
Karon Pangestu & Marco Manoppo
September 20, 2025
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Good Morning.
To kick off the week, we’re excited to announce a new addition to our newsletter. Starting this Monday, Onigiri Capital (onigiri.vc) will be joining us with a weekly post offering their perspectives on the stablecoin industry. Expect fresh takes on market trends, project developments, and the broader dynamics shaping adoption.
Onigiri Capital, a blockchain-focused investment fund with an initial target size of US$50 million, is launched by Saison Capital, the venture arm of Japan’s Credit Saison. Onigiri Capital is on a mission to chart the next chapter of finance and invest in seed and Series A blockchain startups in stablecoins, payments, RWAs, DeFi and financial infrastructure. The fund’s strategy emphasizes connecting startups in the US with Asia’s growing digital asset markets.
Stay tuned for their first piece at the end of this week — you won’t want to miss it.
Recap this Week's Headliners
SS #31 - Tether Launches U.S.-Regulated Stablecoin USAT
SS #32 - BDACS Launches Won-Backed Stablecoin
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🍙Onigiri Take
Stablecoins are no longer peripheral to crypto markets—they have matured into core financial infrastructure supporting cross-border settlements, trade finance, remittances, and enterprise payments. Effectively, they now function as digital-dollar and digital-fiat rails.
With the GENIUS Act passed in the U.S., the reserve model for payment stablecoins has been standardized: issuers must be 100% backed by cash and U.S. Treasuries. This eliminates differentiation on safety, shifting the competitive frontier to three areas:
Distribution networks (partnerships with payment providers, merchants, and enterprises).
Ecosystem integration (on-chain interoperability, DeFi linkages, and API rails).
Regulatory positioning (credibility with policymakers, bank-grade oversight, and local licensing).
The numbers reinforce this transition. As of mid-September 2025, the total stablecoin market capitalization exceeds $280 billion, up more than 40% year-to-date. Against this backdrop, this week’s announcements signal two converging trends shaping the next phase of adoption:
Regulation-driven issuance: Tether’s launch of USAT, a U.S.-regulated dollar stablecoin, represents a fundamental pivot toward compliance. With Anchorage Digital as issuer and Cantor Fitzgerald managing reserves, USAT is positioned to challenge USDC head-on in the institutional U.S. market.
Local-currency stablecoins: BDACS’ KRW1, fully backed by Woori Bank deposits and integrated with real-time APIs, demonstrates the appetite for sovereign currency-pegged stablecoins. While only a proof-of-concept today, KRW1 positions
Winners & Losers: Institutional Outlook
Key Party | USAT Impact | KRW1 Impact | Strategic Outlook |
1. Major Stablecoin Issuers (Tether, Circle, MakerDAO, Ethena, BDACS) | USAT elevates Tether into the U.S. regulatory perimeter, challenging Circle’s dominance in institutional flows. MakerDAO/DAI and Ethena/USDe gain credibility post-GENIUS Act but face higher compliance scrutiny. | KRW1 positions BDACS as a first-mover in sovereign-currency stablecoins. Signals opportunity for regional players (e.g., JPYC, JPY tokens) to replicate. | Stablecoin wars shift from offshore liquidity (USDT vs. USDC) to regulatory legitimacy and local-currency integration. |
2. Banks & Financial Institutions (Woori, KakaoBank, JPMorgan, Citi, Cantor, Anchorage) | Anchorage & Cantor gain prestige as issuer/reserve manager of USAT. Global banks may follow suit by partnering with issuers to expand product lines. | Woori Bank cements role as custodian for KRW1; KakaoBank poised to enter if regulators grant banks issuance rights. | Banks emerge as essential backstops and enablers of stablecoins. Future issuance may tilt toward bank-led or bank-backed models. |
3. Regulators & Policymakers (U.S. Treasury, SEC/CFTC, Fed, FSC/BoK, MAS, ECB) | USAT validates the GENIUS Act as a workable regulatory template; strengthens U.S. leadership in setting global standards. | KRW1 pressures Korea’s regulators to define who can issue won stablecoins (banks vs. custodians vs. BoK CBDC). | Regulators remain ultimate gatekeepers; policy design will dictate market structure, systemic safeguards, and competitive landscape. |
4. Corporates & Enterprises (Visa, Mastercard, PayPal, trade & remittance firms) | USAT offers corporates a compliance-ready alternative to USDC for payments, supply-chain finance, and settlement. | KRW1 could unlock new e-commerce, trade, and remittance rails denominated in won. | Corporates will adopt pragmatically, prioritizing rails with deep liquidity, low friction, and regulatory clarity. |
5. Retail Users & Crypto-Natives (remittance users, DeFi participants, traders) | USAT expands access to compliant stablecoins in the U.S., with potential listings on regulated exchanges and DeFi pools. | KRW1 may eventually flow into retail apps (e.g., KakaoPay), enabling retail adoption of programmable won. | Retail demand underpins liquidity depth, but adoption depends on user experience, accessibility, and liquidity aggregation. |
6. Developers & Protocol Founders (Ethereum, Solana, Avalanche, Uniswap, Aave) | USAT may integrate into DeFi and enterprise APIs, expanding developer toolkits. | KRW1 provides a sandbox for developers to build won-denominated dApps on Avalanche. | Developers gain new primitives (regulated stablecoins, local fiat rails), but must design for interoperability and compliance integration. |
7. Institutional Investors & VCs (a16z, Pantera, Paradigm, Temasek, GIC) | USAT creates new entry points for institutional capital to access regulated stablecoin exposure. | KRW1 signals investable opportunities in Asia’s stablecoin infrastructure. | Investors will favor infrastructure plays aligned with regulatory clarity and bank partnerships. |
8. Infrastructure & Service Providers (custody, compliance, cloud, oracles) | Custody firms (Fireblocks, BitGo) and compliance providers (Chainalysis, TRM) benefit as USAT raises institutional compliance standards. | KRW1’s real-time API integration with Woori Bank highlights opportunities for infra providers to power fiat–on-chain transparency. | Infra players become critical middleware, monetizing security, compliance, and interoperability. |
9. DAOs & Governance Communities (MakerDAO, Aave DAO, Lido DAO) | USAT may challenge DAO-issued stablecoins (e.g., DAI) by setting higher compliance expectations. | KRW1 shows regulators’ preference for institutionally backed issuers, sidelining DAO-based stablecoins. | DAOs face existential pressure to either adapt governance for compliance or risk marginalization. |
10. Exchanges & Market Infrastructure (Binance, Coinbase, OKX, DEXs) | Coinbase may see competitive pressure if USAT wins share from USDC. Binance and offshore CEXs may list USAT selectively depending on U.S. regulatory stance. | Korean exchanges may integrate KRW1 for local fiat access, especially if banks are authorized. | Exchanges are gateways for distribution; listings will shape liquidity depth and adoption curves. |
Under the Hood: Policy Innovation by Necessity
USAT: Tether finally embraces U.S. compliance. With Anchorage Digital as issuer and Cantor Fitzgerald as reserve manager, USAT is designed for institutional comfort. Bo Hines’ political connections also suggest an attempt to build regulatory goodwill.
KRW1: Structured as a proof-of-concept only, avoiding premature regulatory conflict while demonstrating transparency through Woori Bank API integration. It’s less about immediate circulation, more about shaping Korea’s upcoming stablecoin law.
Both cases show stablecoins as bridges between crypto-native liquidity and traditional finance infrastructures, but their timelines differ—USAT is ready for commercialization, KRW1 is a regulatory play. Korea at the forefront of regulated local stablecoin frameworks.
Together, USAT and KRW1 illustrate the evolution of stablecoins from offshore arbitrage instruments to localized, institutionally integrated infrastructures. They also highlight regulators’ growing comfort with stablecoins, provided they are anchored in banking partnerships, transparent reserve structures, and legal clarity.
Stablecoin ≠ Crypto — It’s the New Dollar Infrastructure
Macro backdrop: Elevated U.S. interest rates make Treasuries highly profitable for issuers, while governments now view stablecoins as complements to CBDCs, especially for cross-border settlement.
Use case focus:
USAT: A U.S.-regulated dollar stablecoin aimed at enterprise payments, trade finance, and remittances. By combining Tether’s liquidity strength with U.S. compliance, it directly challenges USDC in institutional flows.
KRW1: A won-backed stablecoin designed for domestic commerce and payroll, reducing reliance on the USD. Backed by Woori Bank deposits and API-integrated for transparency, it sets a model for local-currency stablecoins.
USAT and KRW1 highlight how stablecoins are evolving into digital-dollar and digital-fiat rails—standardized by regulation, bank-integrated, and built for real-world payments.
Institutional Risks & Unknowns
Liquidity Fragmentation: With USDT, USDC, USDe, and now USAT, liquidity may splinter across issuers and ecosystems, reducing depth and efficiency. KRW1 adds another layer of fragmentation—while valuable for domestic rails, it risks siloing liquidity away from global dollar flows.
Political Risk: USAT’s credibility hinges on its U.S. compliance posture. Any partisan shifts (e.g., election-driven regulatory tightening) could destabilize adoption. For KRW1, the political dimension is sharper—whether Korea permits non-bank entities like BDACS to issue stablecoins is ultimately a policy decision, and could swing with public opinion or lobbying by incumbents.
Adoption Curve: USDC enjoys first-mover advantage in institutional distribution (Visa, Mastercard, Coinbase). Breaking entrenched networks will be an uphill climb for USAT. For KRW1, adoption is still theoretical—its proof-of-concept shows feasibility, but consumer and enterprise uptake hinges entirely on the final regulatory design and bank partnerships.
Systemic Reliance: As global trade and domestic settlement rails migrate to stablecoins, systemic risk grows. Stablecoins are becoming too large to ignore, yet remain outside traditional prudential frameworks. KRW1, if adopted at scale, would tether Korea’s payment system to a hybrid model where private custodians and banks share monetary functions—raising questions of systemic oversight and resilience.
Onigiri Capital is a $50 million blockchain investment fund positioning itself as the premier institutional-grade bridge between U.S. innovation and Asia’s established blockchain and financial networks for founders to build global financial products.
If you'd like to discuss or contribute to the next Institutional Lens, contact us at [email protected]
Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.