"Digital G2 Transition, KRW Stablecoin Emerging as the Key Catalyst"

An analysis has emerged that KRW-based stablecoins are an essential factor for Korea to secure digital leadership and to enter the global infrastructure landscape.

On the 29th, blockchain think tank Hashed Open Research (HOR), in a joint report with blockchain research firm Fourpillars, emphasized that "the success of stablecoins should begin with a functional structural design, not regulation, and must serve as a trusted infrastructure for a Web3-based participatory economy."

HOR analyzed that the reliability base of stablecoins lies not in government guarantees, but in technological structures such as smart contracts, real-time audits, and automated redemption algorithms. In particular, it pointed out that the bank-based models in Europe and Japan have significant limitations, as they have low compatibility with the blockchain ecosystem and restrict tokenomics design.

As an alternative, HOR presented a capital market-based model. It explained that private entities should participate as issuers, and that it is necessary to secure both liquidity and profitability by distributing reserve assets through money market funds (MMF) and government bonds. It also analyzed that by automating issuance, burning, and redemption procedures via smart contracts, and by establishing technological connectivity such as API integration, global competitiveness can be achieved.

Kim Yong-beom, CEO of HOR, stated, "Considering the nature of currency in the digital era, a capital market-based structure is virtually the only option," and added, "Korea should step up as a co-architect of the global monetary order, not simply as a regulation adopter."

In addition to CEO Kim Yong-beom, this report was co-authored by Kang Hee-chang, Product Lead at Fourpillars; Bok Jin-sol, Research Lead; Kim Hyo-bong, Partner Attorney at Bae, Kim & Lee LLC; Jung Soo-hyun, Senior at Shinhan Investment Corp.; and Lee Jae-hyuk, Partner Accountant at Samil PwC.