DFG’s WebX and KBW 2025 Recap & Insights: Japan & South Korea — Converging Visions, Diverging Strategies

Author: James Wo, Founder & CEO, Digital Finance Group

The past months have been remarkable for Asia’s digital asset ecosystem, marked by two of the region’s most influential gatherings, WebX 2025 in Tokyo and Korea Blockchain Week 2025 in Seoul. Both conferences drew massive participation from global investors, builders, regulators, and innovators, signaling the growing maturity and influence of Asian markets in shaping the next wave of Web3. As a sponsor of WebX and a host of our own summit during KBW, DFG had the opportunity to engage deeply with local founders, policy leaders, and ecosystem partners. Through these conversations, we observed fascinating parallels and distinct contrasts between Japan and South Korea, two of Asia’s most dynamic and forward-leaning crypto economies.

Japan & South Korea: Contrasts and Convergence in Web3

AI x Blockchain

At both WebX 2025 in Tokyo and KBW 2025 in Seoul, the convergence of AI and blockchain wasn’t just a theme. It was a strategic frontier shaping the next cycle of innovation. Yet the two markets approached it from entirely different angles that reflect their national tech DNA. Japan’s conversations revolved around pragmatic and scalable integration: how AI can enhance blockchain infrastructure, automate compliance, and simplify user onboarding for DeFi and enterprise-grade applications. This direction closely aligns with the work of several DFG portfolio companies, such as Render Network and Gensyn, which are building at the intersection of AI and decentralized computing. The tone was deliberate and methodical, grounded in Japan’s culture of precision, data integrity, and ethical deployment. Meanwhile, in Korea, the energy was unmistakably experimental. Builders and funds openly explored AI-powered DeFi strategies, algorithmic trading agents, and quantum-resistant protocols. AI was portrayed not merely as a supporting tool but as a competitive edge in an increasingly fragmented market. The contrast was clear: Japan views AI as infrastructure to refine blockchain’s usability and governance, while Korea sees AI as a catalyst for market performance and global competitiveness. Japan’s AI blockchain landscape favors long-term, infrastructure-heavy bets. Korea, by contrast, offers fertile ground for high-velocity, high-reward experimentation.

Stablecoins and RWA

Stablecoins and tokenized RWAs dominated conversations across both events, yet the contrast in direction was unmistakable. At WebX, Japan’s approach was shaped by institutional discipline and financial pragmatism. Discussions focused on how tokenization could lower financing costs and democratize access to corporate debt and SME funding — underscored by examples like Ant Group tokenizing $8.4B in Chinese energy assets on its blockchain to cut costs and speed up funding. Japan’s regulators and banks are methodically piloting yen-backed stablecoins, emphasizing transparent audits, interbank interoperability, and regulatory compliance. As an early investor in Circle, we look forward to seeing the evolution and broader adoption of yen-backed stablecoins in Japan’s financial ecosystem. In Korea, however, the narrative was faster, more fluid, and distinctly entrepreneurial. KBW sessions explored tokenized real estate, shipping, and supply chain assets, with an eye toward secondary trading and cross-border liquidity. Similarly, our portfolio company Plume Network is advancing this vision by tokenizing assets such as real estate, credit, and commodities, creating a secure and compliant environment for their use in on-chain financial activities. Korea explored scalable ecosystems for global retail access, leveraging crypto-friendly tax rules to attract liquidity. In 2025, this environment has also fueled a notable surge in the adoption of perpetual DEXs, as Korean investors increasingly shift toward decentralized trading platforms that offer frictionless onboarding, self-custody, and faster token listings. If Japan’s model prioritizes trust, compliance, and institutional scaling, Korea’s emphasizes accessibility, experimentation, and velocity. This duality is crucial: Japan is becoming Asia’s compliant gateway for institutional-grade digital assets, while Korea’s market is a sandbox for rapid retail adoption and frontier innovation. This dynamic tension fuels the region’s complementary growth.

Regulation and Government Stance

The regulatory divergence between Japan and Korea continues to define their competitive identities in the global crypto landscape. Japan operates with a meticulous, rules-based regime, designed to foster “responsible innovation” and institutional confidence. WebX emphasized strong collaboration between the Financial Services Agency (FSA) and the private sector, highlighting Japan’s forward-looking yet conservative approach anchored by digital yen pilots, licensing clarity, and cross-border regulatory alignment with the EU and Hong Kong. This framework gives investors predictability and long-term security. Korea, on the other hand, thrives on regulatory flexibility. KBW discussions revealed how its postponed crypto taxation and relatively light-touch oversight have stimulated one of the world’s most active trading ecosystems. Policymakers are now navigating how to balance innovation with oversight, especially amid dialogues with U.S. counterparts to enhance cross-border compliance. Japan offers policy clarity ideal for infrastructure and institutional plays, while Korea’s fluid environment rewards agility, growth hacking, and consumer-facing innovation. The contrast underscores Asia’s evolving dual thesis: Japan builds the rails of trust, and Korea fuels the engines of market momentum.

DFG’s Events

At WebX 2025

As a Gold Sponsor of WebX 2025, DFG had the opportunity to engage with a broad range of local participants at our shared booth with Tevau. Through our speaking and judging engagements, we gained deeper insights into the Japanese Web3 landscape, particularly how established Web2 businesses are evolving and transitioning into the Web3 ecosystem.

It was great joining the panel at WebX to share about our evolving investment thesis. Recently, DFG’s focus has shifted to quality over quantity, backing innovative infrastructure and visionary teams rather than replicating existing models.

I also participated in the panel at VC Connect to discuss how institutions are entering Web3 through tokenization, compliance, and real adoption. DFG is committed to backing genuine innovation, not copycats, to pave the way for institutional adoption.

Our Head of Research Geng Kai participated in the VC Connect pitch session, engaging directly with Japan’s emerging Web3 startups and innovators. The session offered exposure to the next generation of builders shaping Japan’s blockchain ecosystem.

At KBW 2025

DFG co-hosted the one-day summit “Bridge the Block Korea Day” with Jsquare in Seongsu on September 22 during Korea Blockchain Week 2025. The event brought together leading voices from across the Web3 ecosystem, featuring insightful talks from prominent speakers, including a Korean Assemblyman, high-quality startup pitches, and interactive booth sessions, all contributing to a vibrant and successful day of exchange and collaboration.

On the main stage, speakers shared perspectives on DeFi, AI, and DePIN, as well as the market dynamics and macro conditions shaping South Korea’s blockchain ecosystem and its differences from global markets. Assemblyman Kim Hyun-jung joined as a special guest speaker, offering valuable insights into the country’s evolving digital asset regulations and policy landscape.

The VC Pitch Session, a sub-event co-hosted with AKINDO, featured 10 emerging startups across diverse ecosystems. Six judges from leading venture capital firms and accelerators evaluated the projects, posed sharp questions, and ultimately selected the top three winners — UnifAI, BitGPT, and Avinasi.

Conclusion

Both Japan and South Korea are proving to be two of the most dynamic and forward-leaning Asian regions in Web3. From Japan’s disciplined, regulation-driven innovation to South Korea’s fast-moving, experimentation-led culture, each market showcases unique strengths that are collectively shaping the region’s next wave of blockchain growth. The energy and creativity we witnessed at WebX and KBW 2025 reaffirm our conviction that Asia will continue to lead the global transition toward a decentralized digital economy. At DFG, we’re excited to keep supporting founders, projects, and partners driving this momentum, and we look forward to returning to Tokyo and Seoul soon to deepen our engagement with these thriving communities.

About DFG

Digital Finance Group (DFG) is a leading global Web3 investment and venture firm, established in 2015. With assets under management exceeding $1 billion, DFG’s investments span across diverse sectors within the blockchain ecosystem. Our portfolio boasts investments in pioneering projects such as Circle, Ledger, Coinlist, Near, Solana, Render Network, ZetaChain, and over 100 others.

At DFG, we are committed to generating value for our portfolio companies through market research, strategic consult, and sharing of our vast resources globally. We are actively working with the most transformative and promising blockchain and Web 3.0 projects poised to revolutionize the industry.

DFG Website: https://dfg.group
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