[Click eStock] "ITCen Global, Korea's Only Gold-Based Stablecoin Business in Progress"

On May 16, KB Securities stated that ITCen Global is the only company in Korea conducting a gold-based stablecoin business, and that its corporate value is expected to stand out as it becomes an issuer and operator of digital assets in the future. The firm did not provide an investment opinion or target price.

KB Securities predicted that ITCen Global will gain prominence due to policies related to virtual assets.

Lim Sangkuk, a researcher at KB Securities, explained, "Recently, presidential candidates have mentioned the need for a won-based stablecoin, and we expect that policies and legislation related to digital assets will accelerate in the future. Stablecoins are digital assets whose value is fixed based on fiat currency, gold, or cryptocurrencies. Unlike highly volatile cryptocurrencies such as Bitcoin and Ethereum, stablecoins are linked to specific assets at a 1:1 ratio, resulting in lower price volatility and greater stability."

Lim Sangkuk, a researcher at KB Securities, added, "ITCen Global, through its subsidiary Credder, is conducting Korea's first stablecoin business linked to Sengold's e-gold, called 'GPC (Gold Pegged Coin).' The company is also expected to prepare for a stablecoin issuance business based on fiat currency linkage in the future."

He further emphasized, "Stablecoins are often backed by real-world assets (RWA). When the stablecoin market becomes more active, ITCen Global's various RWA businesses, including the gold-based stablecoin 'GPC' and 'Sengold,' are expected to serve as growth momentum for the company."

ITCen recorded sales of 1.63 trillion won and operating profit of 33.83 billion won in the first quarter. Compared to the same period last year, these figures increased by 79.7% and 772.2%, respectively. Researcher Lim stated, "Interest in gold is expected to continue due to ongoing global geopolitical risks, economic uncertainty, a weaker dollar, and expectations of interest rate cuts. Supported by improved performance from major subsidiaries in the second half of the year, ITCen's earnings are expected to improve further in 2025."