Axelar, XRPL Korea Complete Won Stablecoin PoC With Hana Financial TI

Axelar and XRPL Korea said April 30 that they had completed a proof of concept with Hana Financial TI for a won-denominated stablecoin's issuance, circulation and settlement structure.

The companies said the PoC verified the feasibility of the stablecoin's full operating process, from issuance and supply management to asset transfers and settlement across different blockchains, as well as control functions for financial institutions. The test also covered functions to restrict transactions in specific assets, recall them and adjust circulating supply in abnormal situations.

The participants divided responsibilities for the project. Axelar provided the network connecting different blockchains, laying the groundwork for asset transfers and settlement links in a multichain environment. XRP Ledger, or XRPL, implemented control functions needed for issuance and operations in a real-world environment, drawing on its fast processing speed and asset management features.

The companies said the PoC was meaningful in that it secured a technical foundation for applying the full operating process of a won stablecoin in a financial environment. If institutionalization discussions gather pace, the results could be used as a reference case for reviewing service design and operating frameworks.

Ahn Jae-hyun, Axelar's head of business development, said the project demonstrated that Axelar's cross-chain infrastructure can stably support the asset transfer and settlement systems required by financial institutions in a multichain environment. He added that the company would work with domestic financial institutions on blockchain-based asset management systems built with regulatory requirements in mind.

The participating institutions said they plan to use the test results to gradually explore practical service applications in line with the timetable for institutionalization and the direction of regulation.