출처: Block Media
# Asia Stablecoin Alliance Sets the Stage for Regional Stablecoin Adoption
The recently established Asia Stablecoin Alliance aims to propel the adoption of stablecoins across the region. Founded by Keechang Kang and Jinsol Bok of Population, alongside Alex Lim (Jongkyu Lim), head of LayerZero Korea, the initiative seeks to create a platform for collaborative research and knowledge sharing, focusing on the development of regulatory clarity and technological infrastructure to support stablecoins.
Key Highlights
As the demand for Korean won-based stablecoins heats up, stakeholders are exploring their potential as viable payment solutions.
Stablecoins show striking similarities to preloaded payment instruments such as KakaoPay Money and NaverPay Money—both in terms of issuance regulations, reserve fund management, profit distribution, and bankruptcy protections. However, stablecoins surpass traditional systems by offering seamless interoperability across fragmented ecosystems, including blockchain networks.
Despite their promising use cases, the initial rollout of Korean won-based stablecoins faces several obstacles. These include limited on-chain service compatibility, stringent foreign exchange laws in South Korea, and complex user onboarding processes—all of which could hinder widespread adoption.
1. Stablecoins vs. Preloaded Payment Instruments: Key Comparisons
1.1 Similarities in Use Cases
The conversation around Korean won stablecoins has gained traction as issuers and stakeholders explore their potential applications. While stablecoins are currently most prevalent in cryptocurrency trading across centralized (CEX) and decentralized exchanges (DEX), many experts view payment systems as the next frontier for adoption due to their everyday relevance and efficiency.
South Korea’s prepaid payment systems—like KakaoPay Money and NaverPay Money—dominate the market, with the average daily transaction volume expected to reach ₩1.023 trillion in 2024, representing a 10% year-over-year growth, according to the Bank of Korea. These systems account for 35% of total payments, closely trailing credit cards at 41%.
Preloaded instruments allow users to deposit fiat currency and spend the virtual equivalent across multiple services. At first glance, stablecoins function similarly but differ fundamentally in scope and capabilities.
1.2 Key Differences: Stablecoins and Preloaded Payment Systems
1.2.1 Issuance Regulations
Preloaded payment systems in South Korea are tightly regulated and can only be issued by registered prepaid payment providers. Companies must meet stringent criteria, including maintaining adequate financial reserves, employing skilled IT personnel, and securing initial capital. Additionally, operators managing deposits exceeding ₩30 billion or annual issuance volumes over ₩50 billion must register with authorities. Examples include KakaoPay Money, NaverPay Money, and Toss Money.
Conversely, the issuance of stablecoins remains underdeveloped but promising, with regulations proposed under the Digital Asset Basic Act. Requirements include reserve backing of issued stablecoins, insolvency risk mitigation, and government approval, thereby fostering market participation from fintech and private sector innovators.
1.2.2 Reserve Fund Management
Prepaid systems secure customer deposits separately from operating assets, leveraging options such as:
- Bank Deposits: Protected under depositor protection laws.
- Trusts: Invested in low-risk assets like bonds by financial institutions.
- Insurance: Provides payouts in cases of insolvency.
Stablecoin issuers often follow similar practices but lack standardization in South Korea due to regulatory gaps. For instance, the U.S. GENIUS Act requires reserves to be held in highly liquid assets like Treasury bills and FDIC-insured deposits, setting an international benchmark.
1.2.3 Reserve Profit Distribution
South Korean prepaid payment providers can generate income through reserve management. For example, KakaoPay reportedly earned ₩19 billion in interest by depositing ₩564 billion reserves with Shinhan Bank. However, financial authorities prohibit distributing these earnings to customers due to solicitation laws.
Similarly, stablecoin operators like Circle (issuer of USDC) manage large reserves—$63 billion in 2024—primarily invested in government securities. While token holders cannot profit directly from these reserves, platforms (e.g., Coinbase or PayPal) enable interest payments indirectly through partnerships.
1.2.4 Expanded Use Cases
Korean prepaid systems are widely accepted for shopping, transportation, and entertainment. NaverPay, for example, facilitates international payments via Visa card integration and supports domestic subscriptions and eCommerce.
Meanwhile, stablecoins operate beyond geographic or ecosystem boundaries, thanks to blockchain technology. Emerging use cases include:
- Integration with Card Networks: Visa and Mastercard have introduced stablecoin debit cards and transaction mechanisms.
- Collaboration with Payment Platforms: PayPal now supports stablecoins for payments.
- Web3 Wallet Connections: Shopify and other platforms enable direct payments using stablecoins stored in crypto wallets.
This cross-platform, global functionality positions stablecoins as transformative solutions compared to traditional systems.
1.2.5 Payment Fee Structures
Preloaded systems bypass intermediary card networks, retaining all transaction fees, which range from 0.72% to 2.13% depending on merchant volume. Stablecoins also avoid similar intermediaries, but fee savings remain comparable to credit card transactions globally. However, blockchain adoption could eventually reduce merchant fees over time.
1.2.6 Bankruptcy Safeguards
Both preloaded systems and stablecoins adhere to customer fund protection principles, ensuring refundable assets in cases of insolvency. South Korea mandates segregated reserves under financial law, granting customers priority claims—a practice mirrored internationally in stablecoin bankruptcy provisions like the GENIUS Act.
2. Usability and Adoption Outlook
2.1 Early Adoption Challenges
In their early stages, Korean won-based stablecoins are unlikely to outperform prepaid systems in terms of convenience. Challenges such as limited blockchain applications, regulatory hurdles, and user friction may hinder adoption.
For instance, even partnerships between leading platforms like NaverPay and Upbit could falter due to insufficient on-chain services and lack of user familiarity with blockchain processes.
2.2 Long-Term Potential
As blockchain technology continues evolving, stablecoins could revolutionize payment systems globally. Innovations like Shopify’s USDC integration demonstrate how Web3 wallets can streamline payments across diverse platforms. Similarly, South Korea’s platforms—like Kakao and Naver—could leverage stablecoins to unify fragmented payment ecosystems while scaling internationally.
3. Conclusion
The comparison between preloaded payment instruments and stablecoins reveals shared foundations—such as reserve management and regulatory safeguards—and critical differences in scalability and potential use cases.
Stablecoins stand out with unparalleled global interoperability, enabling payments across diverse ecosystems ranging from blockchain protocols to eCommerce platforms.
While the immediate benefits of Korean won-based stablecoins may remain limited, laying the groundwork for adoption is essential. As blockchain-powered financial systems mature, South Korea must innovate proactively to maintain competitiveness in the global payments landscape.
