Dunamu Vice Chairman Kim Hyeongnyeon: Won Stablecoins Are “Rather Idealistic”

Revealed at virtual asset policy conference
"Competition with traditional financial institutions is both a threat and an opportunity"
"Dunamu is ready for tokenization and stablecoins"

Dunamu co-founder and Vice Chairman Kim Hyeongnyeon expressed disappointment over the competitiveness of won-denominated stablecoins. If dollar-denominated stablecoins offer interest rewards, such as rewards programs, there would be less incentive to convert them into won. He voiced concern that the use of the U.S. dollar would accelerate if dollar-denominated stablecoins enter South Korea under the stablecoin regulatory legislation set to take effect next year.

Speaking at D-CON 2026, a digital asset policy conference held at the Fairmont Ambassador Seoul in Yeouido, Seoul, on the afternoon of November 10, Kim said, "There are many ideas related to won-denominated stablecoins, but, frankly, I personally think they are idealistic."

Kim took part in a discussion on virtual assets alongside Min Byeongdeok of the Democratic Party of Korea and Park Sumin of the People Power Party during a session titled "Challenges and Solutions for Becoming a Leading Nation in Digital Assets," moderated by economics and current affairs YouTuber Shuka World. He said that even if won-denominated stablecoins are introduced, dollarization is likely to accelerate because dollar-denominated stablecoins pay interest in the form of "rewards." Dollarization refers to the official or unofficial use of the U.S. dollar instead of a country's own currency.

Dunamu Vice Chairman Kim Hyeongnyeon shares his views on digital assets at D-CON 2026, a digital asset policy conference held at the Fairmont Ambassador Seoul in Yeouido, Seoul, on the afternoon of the 10th. Dunamu

"U.S. stablecoin issuers are already knocking on the doors of Korean exchanges, saying they will pay interest," Kim said. "I am concerned that dollarization could intensify when the GENIUS Act takes effect next year and dollar-denominated stablecoins begin circulating in earnest, as individuals will hold them in their digital wallets and earn interest."

Kim emphasized that won-denominated stablecoins are similar to deposits held at virtual asset exchanges, and that Dunamu already has the technology for them. "Like securities firms, Dunamu holds deposits, and stablecoins are not much different from deposits," he said. "With just a little technology added to the practical framework, deposits can readily be converted into stablecoins."

Asked about traditional financial companies entering the virtual asset market, Kim said it was both a threat and an opportunity. "It is definitely a threat," he said, "but, as has always been the case amid challenges, I believe there are opportunities." He also stressed the importance of working with financial companies that have acquired stakes in Dunamu. "Several financial companies have acquired stakes and are exploring what we can do together in the virtual asset market. We plan to enter various business areas through regulatory sandboxes," he said.

At the D-CON 2026 virtual asset policy conference held on the afternoon of the 10th at the Fairmont Ambassador Seoul in Yeouido, Seoul, economics and current affairs YouTuber Shuka World (from left), Min Byeongdeok of the Democratic Party of Korea, Park Sumin of the People Power Party, and Kim Hyeongnyeon, vice chairman of Dunamu, discuss virtual assets. Dunamu

Kim expressed disappointment that tokenized stocks such as Samsung Electronics and SK hynix are traded on overseas exchanges. "It is deeply regrettable that Samsung Electronics and SK hynix, two of Korea's leading stocks, are traded on overseas exchanges," he said. "Players such as financial companies and securities firms are fully prepared technologically, but regulations are making things difficult. From our perspective, it is frustrating that overseas markets provide an environment for trading and leveraging Korean stocks."

He said that allowing foreign investors to trade could help South Korea's virtual asset market advance to the next level. "Product variety is important, but if non-resident foreigners could bring in dollars, convert them into won and freely trade virtual assets, just as they can buy Korean stocks, I believe that would create an environment for the market to take a leap forward," Kim said.

In closing, Kim said, "If the right institutional framework is put in place, I will do my utmost to help us become a global player representing Korea."

Meanwhile, lawmakers who took part in the discussion said that passing the Digital Asset Basic Act and scrapping regulations were necessary to develop the virtual asset market. "The issues of who can issue won-denominated stablecoins and limits on major shareholders' stakes in exchanges are issues that do not exist anywhere else in the world," said Min Byeongdeok. "The passage of the bill is being delayed over unnecessary issues. Rather than addressing everything in the law, we should pass it and establish guidelines so that creative ideas can flourish."

Park Sumin said the authorities should first make an administrative declaration rather than drafting an overly prescriptive basic law. A declaration that businesses would not be penalized as long as they comply with requirements such as anti-money laundering rules could ease the industry's unease, he said. He also called for fully allowing corporations and institutional investors to invest in virtual assets and abolishing the one-exchange-one-bank rule.

This content was produced with the assistance of AI translation services.