[TL;DR]
Stablecoins serve as a core infrastructure for digital financial innovation, overcoming the volatility inherent in cryptocurrencies and enabling diverse applications such as global payments and real-time settlements.
This report systematically analyzes and compares different stablecoin models—bank-led, capital market-led, and crypto-native—focusing on their technical design, governance, collateral management, regulatory compliance, and multi-chain strategies.
The Korean won stablecoin is expected to be a critical foundation for ushering in the digital asset era in Korea, providing an opportunity to become a global “Digital G2” through technical and policy preparedness.
This analysis offers practical technical insights and design guidelines for domestic and international stakeholders considering stablecoin issuance and implementation.
1. Introduction
As the digital asset market and blockchain technology rapidly advance, stablecoins have emerged at the center of global financial innovation, evolving beyond simple virtual assets.
Stablecoins address the fundamental volatility of cryptocurrencies while presenting new possibilities as a medium of exchange and a store of value.
In Korea, discussions around introducing a won-denominated stablecoin have been gaining momentum, attracting attention as a strategic choice crucial for monetary sovereignty and national economic stability.
This "Stablecoin Technical Analysis Report" deeply explores the technical design and operational structures of stablecoins. By comparing and summarizing various domestic and global case studies, it aims to provide clear design standards and direction.
2. Key topics covered in the report
Classification framework
This report classifies stablecoins by collateral type (fiat-backed, crypto-backed, non-collateralized), issuer (banks, fintech companies, DAOs), and operational structure (centralized vs. decentralized, on-chain vs. off-chain).
To support in-depth technical analysis and structural understanding, it focuses on three issuance models: bank-led, capital market-led, and crypto-native.
Technical analysis by type
Bank-led models (e.g., JPM Coin, AVIT, EURC)
These stablecoins are characterized by deposit-backed collateral and permissioned networks. Issued and operated by commercial banks or their affiliates, they rely on centralized governance and regulatory oversight.
Capital market-led models (e.g., USDC, USDT, PYUSD, USDY)
Issued by fintech companies or non-bank financial institutions, these stablecoins are mainly backed by cash and highly liquid assets like U.S. Treasuries. Transparency is ensured through proof-of-reserve mechanisms and external audits.
Crypto-native models (e.g., DAI, USDe)
These are operated by DAOs or protocols, aiming for full decentralization through on-chain collateral and liquidation mechanisms.
Smart contract design and technical elements
The report discusses adherence to ERC-20 standards, minting and burning logic, multisig, pause functions, blacklist features, and other security and management functionalities.
It also provides detailed analysis on collateral management and proof-of-reserve approaches (on-chain/off-chain asset management), governance structures (centralized vs. decentralized DAO models), and ownership control methods.
Multi-chain strategy and bridge technologies
The report compares official bridges (e.g., Circle’s Burn & Mint CCTP, Maker Teleport) with third-party bridges (Lock & Mint, liquidity pool-based models), analyzing their technical differences, advantages, and disadvantages.
It also explores critical considerations for native issuance versus wrapped token strategies, finality, smart contract compatibility, liquidity fragmentation, and message reliability when expanding to multi-chain environments.
3. Conclusion
The "Stablecoin Technical Analysis Report" systematically organizes the technological elements necessary for stablecoin issuance and implementation and provides comparative analysis of major global cases.
It offers strategic insights for designing Korean stablecoins and building digital financial infrastructure.
This report is designed to serve as a practical guide for developers, policymakers, and corporate stakeholders interested in stablecoins, and we hope it will help Korea advance as a leader in the digital asset era.
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