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.
According to Chen, who is based in Dubai, despite market fluctuations, the platform has maintained consistent user downloads of around 1-2 million per week.
Chen explains this steady adoption highlights the growing need for on-chain wallets, particularly in regions where traditional financial systems may be less stable or accessible.
Users in these areas are turning to crypto wallets not only for asset management but also as a safe haven amid volatile local currencies.
“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 noted that in emerging markets, where banking infrastructure is often less developed, crypto wallets provide an essential service, enabling users to manage their finances without relying on traditional financial institutions.
Stablecoins, which are pegged to the US dollar, offer a way for users to protect their wealth from inflation and currency depreciation.
South Korean Market Engaged in DeFi, FOMO-Driven
Shifting the focus to the South Korean market, Chen explained that local users are highly engaged in both cryptocurrency trading and decentralized finance (DeFi).
However, she also pointed out that local regulations and market dynamics present challenges for widespread adoption.
“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 added that if a major telecom company in South Korea, like SK Telecom, partners with blockchain companies like Aptos to launch their own wallet, it could spur a wave of interest in wallet-as-a-service (WaaS) offerings in the country, potentially transforming the market further.
David Kim, senior smart contract engineer at Trust Wallet, shared his insights with CryptoNews on how major South Korean conglomerates are exploring the Web3 space.
During an interview at KBW24, Kim explained that large corporations like Line, Naver, Kakao, SK Telecom, SK Planet, Ahn Lab, and Bithumb are recognizing the importance of Web3 wallets in their strategies.
“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
However, he added that most of them are still in the early stages of finding the right strategies and touchpoints with Web3.
Many are struggling to integrate Web3 solutions effectively with their existing services, as they navigate how to adapt their business models to accommodate decentralized technologies.
Some companies have opted to join forces. For example, Ahn Lab and SK Telecom have merged their Web3 products to create a more appealing solution for users. These collaborations are seen as key to accelerating the adoption of Web3 technologies in South Korea.
South Korean Web3 Market CEX-Focused
Despite these advancements, Kim noted that the South Korean Web3 market is still largely concentrated in centralized exchanges (CEX).
“A lot of retail users’ funds are concentrated on CEXs, while only a small portion is in the DeFi sector,” Kim observed, highlighting the current imbalance in the market.
Kim also attended panel discussions during KBW2023, where executives from major corporations like SK Telecom (SKT) and Aptos discussed their Web3 strategies.
According to Kim, SKT’s Executive Vice President offered valuable insights into the company’s vision for integrating Web3 with their mobile payment services. She emphasized that while user experience (UX) is important, it alone will not drive the migration of users from Web2 to Web3.
“Comfortable and easy Web3 UX isn’t enough to migrate Web2 users to Web3,” Kim said. Instead, users need tangible incentives, such as rewards, points, and practical benefits, to make the transition worthwhile.
Kim also pointed out that institutions in South Korea are now engaging more seriously with Web3, a significant shift from last year’s more cautious approach.
He suggested that this increased interest may be partly influenced by the approval of Bitcoin and Ethereum ETFs in the U.S. market.
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