Korea IXO Blockchain Conference Focuses on Stablecoins and Custody Security

From June 24 to 25, the Korea IXO Blockchain Conference was held in Seoul. As an important event in the Web3 field of Korea, this conference attracted numerous industry professionals to participate and engage in in-depth discussions on hot topics such as DePIN, security tokens, stablecoins, custody, and DAOs.

At the main forum on the 25th, an audit partner from a security company delivered a speech titled "Enhancing the Security Journey of Emerging Tracks," focusing on the role and risk management of stablecoins and accomplice services in the financial ecosystem.

The expert emphasized: "Security is not only a defensive measure but also a key infrastructure connecting traditional finance and digital assets. In the face of emerging fields, we must prepare in advance and actively respond to potential risks."

In the speech, he defined stablecoins as "digital tokens designed to maintain a stable value" and pointed out their structural diversity: "including fiat-pegged, cash-collateralized, physically-backed (such as gold, real estate, silver), and algorithmic types, among others. Each type faces unique security challenges and requires corresponding risk management strategies."

Regarding the issuance and circulation mechanism of stablecoins, he explained: "Reserve assets are usually held in trustworthy financial institutions, issued through smart contracts, and then enter the market circulation via exchanges and financial institutions." Given the rapid expansion of the stablecoin market, he emphasized: "We are at a critical time when it is urgently needed to accurately identify and systematically respond to its potential risks."

The main risks of stablecoins are classified into three categories: reserve risk (such as asset fraud, non-compliant assets, insufficient liquidity); operational risk (such as abuse of authority, non-compliance with AML or KYC); on-chain risk (including network defects, smart contract vulnerabilities, oracle price manipulation, etc.).

To address these risks, he recommends building a multidimensional security response system that encompasses reserve proof, smart contract audits, governance mechanism audits, Blockchain reliability verification, and circulation monitoring.

The expert also reviewed significant events in the stablecoin sector over the past decade (2014-2024). According to statistics, there have been 24 publicly reported major incidents, including 7 attack incidents caused by contract or on-chain vulnerabilities, 3 de-pegging incidents due to design flaws or insufficient reserves, and 14 anchoring failure incidents due to regulatory or liquidity issues. He emphasized: "Regulation and security systems must keep pace with market growth, in sync with industry development."

In the face of frequent stablecoin risk events, global regulatory agencies are accelerating the development of relevant frameworks. Financial regulatory authorities in multiple countries and regions have issued compliance guidelines for stablecoins, focusing on core issues such as user protection, legal statements, and financial risk prevention.

In the field of custody security, the expert introduced a case study: "We provide a comprehensive security assessment and consulting service that covers various threats that may arise at each stage of private key generation, storage, recovery, and use, including penetration testing, source code review, and custody solution architecture assessment, forming a comprehensive service package." He added: "This project has also been submitted as compliance materials to relevant regulatory agencies and several core clients for use."

The theme of this IXO Blockchain Conference focuses on investment practices, emphasizing the real value of projects and market adaptability. The conference invites global blockchain experts, DAO organizers, practical investors, researchers, and traders to provide professional insights from an investor's perspective. The event also includes an exhibition area for projects, a custody security demonstration, offline communication, and other interactive sessions, providing participants with a platform to understand and engage with high-quality Web3 projects.