ITCenGlobal, Me2on, HectoFinancial, and Danal Shares Soar
Focus Intensifies Amid Moves to Ease Stablecoin Regulations
After the presidential election, shares of ITCenGlobal, Me2on, HectoFinancial, and Danal surged in the domestic stock market. All four listed companies share the commonality of pursuing stablecoin-related businesses. As expectations for deregulation of stablecoins have grown following the inauguration of President Lee Jaemyung, there has been a surge in buy orders. Stablecoins are attracting attention not only in Korea but also overseas, including in the United States.
Stablecoins refer to "virtual assets with stable value." These are digital assets whose value is pegged to fiat currencies such as the US dollar or euro, or to gold or other virtual assets, resulting in low price volatility. The demand for stablecoins is rapidly increasing as they combine the speed and convenience enabled by blockchain technology.
Stablecoin-related stocks rise across the board
According to the financial investment industry on June 18, ITCenGlobal's share price rose by 140% from 11,030 won on June 2 to 26,500 won on June 16. During this period, institutional investors recorded a net purchase of 13.4 billion won, driving up the share price. The average purchase price per share was 19,130 won, resulting in an estimated return of 38.5%.
ITCenGlobal is preparing to launch a fiat currency-pegged stablecoin issuance business. The company operates a physical gold trading platform through Korea Gold Exchange, in which it holds a 67.3% stake, and also supports gold fractional investment and peer-to-peer physical trading through its real-asset platforms "CenGold" and "GeumbangGeumbang." In addition, ITCenGlobal owns a 51% stake in Credder, a developer of gold-based blockchain financial platforms. Leveraging its experience in digital trading platforms for physical metals, the company has secured competitiveness in the stablecoin market.
Between June 3 and June 16, shares of Me2on and HectoFinancial rose by 134.4% and 112.6%, respectively. Me2on, a game developer, operates an online casino business based on stablecoins. Its wholly owned subsidiary, AceGaming, recently launched the stablecoin-based casino platform "AceCasino," which can be enjoyed in more than 180 countries worldwide. The platform is designed to enable linkage and exchange with USDC, the stablecoin issued by US-based Circle.
HectoFinancial, a fintech company, is preparing to enter the stablecoin market by leveraging its strengths in existing payment, prepaid recharge, and local currency sectors. The company has signed a memorandum of understanding (MOU) with Hi5Lab, a leading blockchain security firm with the largest domestic track record, for a technology partnership on stablecoin payment systems. HectoFinancial is also pursuing partnerships in payment and distribution with stablecoin operators in both Korea and the United States.
Danal operates PayProtocol, which manages Paycoin (PCI), through its affiliate. PayProtocol has recently established a proprietary payment structure that enables payment with stablecoins and other virtual assets via the global card network Mastercard. Danal has also become the first domestic company to introduce Vietnam's leading payment method, ZaloPay, into its payment services. Driven by expectations for its stablecoin business, Danal's share price rose by 86.3% compared to June 2.
Stablecoin market growth 'just beginning'
The sharp rise in the share prices of listed companies pursuing stablecoin businesses is related to the direction of government policy. Previously, Min Byungdeok, a lawmaker from the Democratic Party of Korea, introduced the "Digital Asset Basic Act" on June 10. The bill calls for the establishment of a presidential Digital Asset Committee to strategically foster the industry at the national level, coordinate policies, and legally permit the issuance of digital assets. If the bill passes, any domestic corporation with equity capital of at least 500 million won will be able to issue won-based stablecoins after obtaining approval from the Financial Services Commission.
Hong Sungwook, a researcher at NH Investment & Securities, explained, "The discussion around won-based stablecoins has rapidly emerged in Korea," adding, "The pledge to establish a framework for utilizing won-based stablecoins was a presidential campaign promise." He also noted, "Institutional arrangements for issuing won-based stablecoins have begun," and expressed the expectation that "if stablecoins are institutionalized, companies will move to issue stablecoins and develop stablecoin-based services."
He predicted, "The 'programmable functionality' of stablecoins can drive the activation of fintech," and added, "General companies will also gradually adopt stablecoins to reduce costs and improve efficiency."
Not only in Korea but also overseas, the adoption of stablecoins is accelerating. Walmart, the largest retailer in the United States, and Amazon, the largest e-commerce company, are discussing stablecoin issuance and utilization strategies. When customers pay by credit card, Amazon and Walmart pay a fee of about 1-3% of sales to card companies and banks. By issuing and using stablecoins for payments, they can reduce fees and improve profitability.
Hong Jinhyun, a researcher at Samsung Securities, emphasized, "Stablecoins function as both a unit of account and a practical means of payment in the digital asset ecosystem," adding, "They are becoming a core infrastructure that structurally influences investment opportunities and directions in the overall virtual asset market." He also explained, "A full-fledged currency hegemony competition over stablecoins is emerging worldwide," and "The United States is actively and concurrently promoting related legislation to maintain its dominance of the dollar."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
