[Op-ed] The Hidden Battlefield of the Korean Won Stablecoin: Competition to Design Digital Financial Standards

Seojun Kim, CEO of Hashed

As legislation for the Korean won stablecoin advances in earnest, a variety of discussions are actively taking place. However, many current debates focus on operational aspects of the "coin," such as issuance scale or distribution methods, risking a miss of more fundamental opportunities. Issuing a stablecoin itself is a relatively simple implementation using already proven technology. The real challenge and opportunity lie in how to design and establish the "technical standards" of the blockchain network on which that stablecoin will operate. Just as TCP/IP became the standard for the internet, the country that secures the technical standards of blockchain finance will lead the digital financial ecosystem for decades to come.

Public blockchains today pursue ideals of transparency and censorship resistance, but precisely because of those characteristics they are unsuitable as institutional financial infrastructure. In an environment where all transactions are public, individuals' sensitive information and companies' strategic information are exposed, and the lack of effective mechanisms to block criminal funds makes regulatory acceptance impossible. Therefore, what we need is a new technical architecture that preserves the innovation of blockchain while meeting the requirements of real-world finance.

Some mention CBDCs or private blockchains as the answer for next-generation financial infrastructure, but such choices are likely to produce isolated financial ecosystems detached from global standards. In contrast, the recently noted "Regulated Open Chain" presents a new path that goes beyond existing discussions.

This concept combines an additional element of "regulatory compliance" with the three core challenges blockchain technology has faced—decentralization, scalability, and security—creating a model that can accommodate both institutions and technology. To strict principled purists it may look like a philosophical compromise, but in practice it is an inevitable transitional process that blockchain must go through to take root in society and become a mass infrastructure.

Global leading companies have already entered this competition for the "regulated open blockchain" standard. Circle's Arc and Robinhood's layer2 projects are attempts not merely at product development but at defining the technical standards of future financial infrastructure. For example, Circle's layer-1 blockchain Arc implements a function allowing regulators to view stablecoin transactions if necessary, while also making those records transparently available to ordinary users. As of 2025, with stablecoins rapidly growing and handling 3% of cross-border payments, securing the technical standard is tantamount to obtaining the authority to design global financial infrastructure.

The core technical specifications of the blockchain network Korea must build should be precisely designed around the following five pillars.

First, a zero-knowledge proof–based selective transparency architecture. This is like a technology that can prove one is an adult without showing an ID. Anyone can verify that a transaction was conducted legitimately, but only the parties involved know who sent how much. This allows companies to transact transparently without exposing sensitive information to competitors, and enables regulators to inspect details with special authority when necessary.

Second, a next-generation identity authentication framework. Beyond current financial system KYC (Know Your Customer) and KYB (Know Your Business), a new concept for the AI era—KYA (Know Your Agent)—must be introduced. For example, when an AI automatically trades stocks, the system would record and track on the blockchain who created that AI, what principles it operates under, and who is responsible if problems occur. This is akin to giving AI a unique identifier like a license plate. No country in the world has yet created such a system, so if Korea establishes the standard first, it can lead the rules for AI-era finance.

Third, a hierarchical consensus mechanism and governance structure. Traditional blockchains treat all transactions the same, but in real finance the verification level for a 100,000-won transfer and a 10 billion-won transfer should differ. Therefore, a system is needed that automatically adjusts verification intensity according to transaction type and scale. Like airport security screening that treats ordinary passengers, VIPs, and suspicious passengers differently, network participants would be classified into regulatory supervision nodes, validation nodes, and general nodes, each assigned different roles and authorities.

Fourth, a dynamic regulatory adaptation engine. Financial regulations in each country change frequently, and currently reflecting those changes requires rebuilding the system. The system we develop should automatically recognize and apply regulatory changes in real time, like a smartphone app that updates itself. For example, if Korea's overseas remittance limits change, the system would immediately reflect that and operate according to the new rules, creating a "living regulatory system."

Fifth, a universal cross-chain interoperability protocol. Various cross-chain bridges and interoperability technologies already exist, but the key is to ensure that a regulatory-friendly chain connects and integrates smoothly with existing public blockchains. When exchanging assets with major blockchains such as Ethereum, Cosmos, and Polkadot, an intelligent protocol is needed that not only ensures technical compatibility but also coordinates so that each chain's regulatory requirements do not conflict with our regulatory framework. This is a core technology that maintains openness while guaranteeing regulatory compliance; without connectivity to the global ecosystem, it will inevitably become "Galapagos finance."

Of course, these technical specs are only the starting point. If each element is researched and developed deeply and established as an international standard, it will become a core export product of global fintech beyond simple domestic use. Zero-knowledge proof optimization solutions, KYA certification frameworks, regulatory policy engines, and so on can each be productized as independent technology packages and offered as verified total solutions to emerging countries preparing their own digital currencies. Combined with Korea's existing experience exporting e-government systems, this can create a new industry of "digital financial infrastructure exports."

The value of a technical standard comes from network effects. TCP/IP became the internet standard not only because of technical superiority but because it was adopted by the most users and developers. Likewise, whoever first reaches the tipping point for blockchain financial standards will dominate the market. Korea already has a high digital financial penetration rate, an active blockchain ecosystem, and flexible institutional foundations like regulatory sandboxes. Combined with a concrete use case in the form of the Korean won stablecoin, this is a prime opportunity to leap into an Asian digital financial hub.

The success metric for the Korean won stablecoin project is not issuance volume or transaction volume. True success depends on how many countries and institutions adopt the technical standards developed by Korea and how sustainable the resulting ecosystem is. This requires strategic investment focused on long-term impact rather than short-term profits. Open-source development, international standardization activities, nurturing the developer ecosystem, and above all, technical diplomacy with other countries will be key.

The opportunity before us is not merely the adoption of a new technology. It is a historic moment to decide whether we will be the designers of the coming digital financial era or once again followers who obey the rules. The Korean won stablecoin is the strategic tool to realize that choice, and the technical standards we create will become the cornerstone of digital financial sovereignty for future generations.

■Seojun Kim, CEO of Hashed — Profile

△Early graduation from Seoul Science High School

△Graduated from Pohang University of Science and Technology, Department of Computer Science

△Chief Product Officer (CPO) and co-founder of Nori

△CEO of Hashed

△Venture Partner at SoftBank Ventures

△Advisor to the National Assembly's Special Committee on the Fourth Industrial Revolution

△Member of the Ministry of Education's Future Education Committee

The contributions of outside writers may differ from the editorial direction of this publication.