Chinese New Year Drives Digital‑Yuan Interest While Traditional Finance Backs Crypto Exchanges in Asia
By Yohan Yun – February 16 2026
Overview
The Lunar New Year holiday has become a catalyst for two parallel trends in the region’s financial ecosystem. On the mainland, the People’s Bank of China (PBOC) has introduced interest‑bearing digital‑yuan (e‑CNY) red‑envelopes, an effort aimed at spurring consumption during the Spring Festival. At the same time, a wave of acquisitions and strategic investments by traditional‑finance (TradFi) players is reshaping the crypto‑exchange landscape in South Korea, Japan and beyond.
Both developments signal a shift toward greater integration of digital assets into mainstream financial services, but they also raise regulatory and competitive questions that could shape the market over the next twelve months.
1. Interest‑Bearing Digital‑Yuan Red Envelopes
What changed
For the first time since the launch of the e‑CNY, Chinese banks are allowing wallet balances to earn interest. The new feature coincides with the 2026 Spring Festival, when “hongbao” — red envelopes traditionally used to gift money — are exchanged digitally via mobile payment apps and the CBDC platform.
Expected impact
- Higher wallet balances: Early reports from local media indicate users are keeping larger sums in their e‑CNY wallets to capture the modest yield, potentially boosting transaction volume during the peak retail‑spending period.
- Shift in the CBDC model: By classifying e‑CNY balances as “digital deposits” rather than pure cash, the PBOC is aligning the currency with commercial‑bank liability structures, which may make it more attractive for deposit‑style services.
- Limited international reach: The e‑CNY remains confined to the domestic banking network, with no cross‑border transferability. Consequently, the interest feature is unlikely to affect global crypto markets directly, but it could set a benchmark for other sovereign CBDCs looking to add a yield component.
Regulatory backdrop
While the PBOC expands the CBDC’s functionality, mainland China continues to enforce a hard ban on crypto trading and mining. In contrast, Hong Kong is moving toward a regulatory framework that will soon admit stable‑coin licences, highlighting a diverging approach to digital assets within the same sovereign territory.
2. TradFi’s Rush Into Crypto Exchanges
South Korea: Toss Eyes Overseas Institutional Platforms
- Strategic intent: Viva Republica’s Toss, a fintech giant that already operates a digital bank and brokerage, is reportedly evaluating the purchase of a foreign exchange focused on institutional trading. The move would be executed through Toss’s U.S. subsidiary, underscoring a desire to access global liquidity pools and regulatory environments outside Korea.
- Scale of domestic ecosystem: Toss boasts a user base of roughly 30 million, about 60 % of the country’s population, giving it a strong domestic foothold that could be leveraged to feed an international exchange operation.
Domestic consolidation continues
- Mirae Asset’s Korbit deal: The asset manager agreed to a near‑$100 million acquisition of Korbit, one of the five licensed Korean exchanges, expanding its presence in the retail‑to‑institutional corridor.
- Naver Financial‑Dunamu transaction: Naver is pursuing a share‑swap that would bring Dunamu (operator of Upbit, the nation’s largest exchange) under its umbrella, valuing the target at more than $10 billion. Ownership caps on exchange shareholders could, however, introduce regulatory hurdles.
- Global players: Binance’s recent purchase of local exchange Gopax and speculative talks of Coinbase targeting Coinone illustrate how international firms are still seeking footholds in the Korean market despite regulatory complexity.
Japan: SBI Holdings Targets Singapore‑Based Coinhako
- Acquisition outline: SBI’s venture arm, SBI Ventures Asset, signed a letter of intent to acquire a majority stake in Coinhako, a Singapore‑licensed payment platform that also operates a crypto‑service entity in the British Virgin Islands. The deal includes a fresh capital injection for the Coinhako Group.
- Strategic rationale: By securing a regulated platform in a jurisdiction that already supports crypto activities, SBI is positioning itself to offer institutional services across Asia while sidestepping the stricter environment in Japan.
3. Analysis
| Factor | Chinese Digital‑Yuan (Interest) | TradFi Exchange Acquisitions |
|---|---|---|
| Primary driver | Stimulate holiday consumption and promote CBDC usage | Expand product offerings and capture institutional crypto demand |
| Regulatory stance | CBDC expansion within a tightly controlled domestic system; crypto still banned | Gradual liberalisation in South Korea and Japan, but still subject to licensing and ownership limits |
| Potential market effect | Short‑term lift in e‑CNY transaction volume; long‑term model for yield‑bearing CBDCs | Consolidation of exchange market, increased liquidity, possible entry of traditional banking services into crypto trading |
| Risks | Limited international usage; possible regulatory tightening if yields affect monetary policy | Integration challenges, cross‑border regulatory friction, and possible pushback from existing crypto‑centric exchanges |
- Competitive dynamics: The interest‑bearing e‑CNY may pressure other stable‑coin issuers (e.g., USDC, Tether) to consider yield products to stay competitive, especially in markets where the digital yuan can be used for payments.
- Financial inclusion: Both trends could broaden access to digital assets – one by making a state‑backed token more attractive to everyday users, the other by bringing retail‑grade banking infrastructure to crypto exchanges.
- Regulatory convergence: While China remains hostile toward decentralized tokens, the willingness to embed blockchain into state projects (e.g., green‑energy certification) suggests a nuanced approach: “blockchain as infrastructure, not as speculative finance.” The opposite is true for Korea and Japan, where the emphasis is on licensing and corporate acquisition rather than outright bans.
4. Key Takeaways
- Interest‑bearing e‑CNY red envelopes are a seasonal stimulus that may become a permanent feature, altering how Chinese users interact with the CBDC.
- Traditional finance firms in South Korea and Japan are accelerating the acquisition of licensed crypto exchanges, signaling a strategic move toward institutional‑grade crypto services.
- Regulatory landscapes remain fragmented: Mainland China’s crackdown on speculative tokens coexists with a governmental push to embed blockchain in public utilities, while Korea and Japan are cautiously opening pathways for regulated exchanges.
- The convergence of legacy finance and digital assets could produce hybrid products—e.g., interest‑bearing stablecoins or bank‑backed crypto custodial services—raising new supervisory challenges.
- Investors should monitor:
- The PBOC’s guidance on e‑CNY yield rates and any subsequent policy adjustments.
- Completion of high‑profile acquisitions (Toss, Naver‑Dunamu, SBI‑Coinhako) and the regulatory approvals they require.
- Emerging stable‑coin licensing frameworks in Hong Kong and Singapore, which could influence cross‑border crypto flows in the region.
The convergence of holiday‑driven consumer behavior and strategic corporate moves underscores a broader trend: Asian markets are actively experimenting with ways to blend traditional finance, state‑backed digital currencies, and crypto‑exchange services. How regulators and market participants navigate this evolving terrain will shape the region’s digital‑asset ecosystem for years to come.
Source: https://cointelegraph.com/magazine/lunar-new-year-digital-yuan-crypto-exchange-fomo-asia-express/?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
