Stablecoins as a Bridge Between Traditional Finance and Web3

“Stablecoins are not just digital assets—they serve as a crucial bridge connecting traditional finance with Web3 finance,” said Byung-Yoon Seo, Director of the Future Finance Research Institute at DSRV. He underscored the importance of stablecoins on February 5 during the National Assembly Forum on Enacting the Digital Asset Basic Act, co-hosted by the Democratic Party of Korea and the Korea Fintech Industry Association.

Seo highlighted the historical evolution of the global remittance system to explain the necessity of stablecoins. “International remittances began with trust-based systems using intermediaries, then evolved into telegraphic transfers, and later into today’s SWIFT network. Yet cross-border transfers still take two to five days and incur high fees,” he pointed out. As a solution, he presented stablecoins, describing them as a means to drastically reduce remittance and payment costs while significantly improving transaction speed.

He noted that the annual transaction volume of stablecoins has already reached $27.6 trillion—exceeding the combined transaction volume of Visa and Mastercard. He added that in the overseas remittance market, the average transaction fee for stablecoins is below 0.5%, far cheaper than the 6% fees charged by traditional banking systems.

Seo also analyzed the broader impact of stablecoins on the global financial system. “Republican lawmakers in the United States believe stablecoins reinforce the dollar’s dominance. In fact, stablecoin issuers currently hold more than $110 billion in U.S. Treasury bonds,” he explained. He further noted that as cross-border payments using stablecoins become more widespread, countries including Singapore, Hong Kong, and Japan are moving quickly to establish new regulatory frameworks.

Turning to Korea, Seo emphasized the urgent need for discussion on stablecoin issuance and adoption. “There are currently no laws in place, and cooperation with existing financial institutions remains limited, making it difficult to advance business initiatives,” he said. He suggested that financial authorities consider launching small-scale regulatory sandboxes to pilot experimental models, stressing that such efforts would help verify safety and identify optimal approaches tailored to Korea’s regulatory environment.