There is some regret that, during the legislative discussions on the Digital Asset Basic Act, more attention has been paid to banks and big tech (large IT corporations) than to specialized corporations that have invested enormous time and expense. Without losing heart, we will build the capabilities to compete with them and prove Bidax's vision.
Ryu Hong-yeol, the head of Bidax, said this regarding the government's move under the Digital Asset Basic Act to grant the qualification to issue stablecoins (virtual assets whose prices are linked to legal tender or real-world assets) to bank-led consortia. Bidax is a digital asset custody corporations for corporations. Last year, it officially issued the won-based stablecoin "KRW1."
Regarding the National Assembly's move to limit the issuers of won-based stablecoins to banks, Ryu said, "Legislation is a balance between innovation and stability. Because stablecoins are connected to currency, payments, and foreign exchange, the public interest is significant, so it's not surprising that the system design process places a large role on banks," but he added, "With banks alone, it is difficult for the industry to grow quickly and flexibly."
KRW1, developed by Bidax, is a 100% collateralized won stablecoin. It maintains a 1:1 reserve against the won, and the issued tokens are fully collateralized by won assets deposited in major domestic commercial banks. The following is a Q&A with Ryu.
─ What led you to start a business related to digital assets after serving as a partner attorney at a law firm?
While working at a law firm, I closely observed changes in various industries and system design, and I judged that digital assets and Blockchain were not a temporary fad but a trend that could change financial infrastructure going forward. Based on my understanding of laws and regulations, I wanted to build essential infrastructure as the market enters the institutional framework. I determined that custody was the area that could most fundamentally solve that problem, so I launched the company.
─ If you were to explain the concept of digital asset custody in simple terms?
You can think of custody as the bank for digital assets. Just as you deposit cash or valuables in a safe place, it securely stores and manages digital assets. It also manages who can access them, what procedures are required to move them, and how controls are implemented to prevent incidents.
─ You have built partnerships with various corporations at home and abroad. What is your roadmap?
A partnership is the result of verifying "whether this company can actually work together." From the outset, Bidax focused on building security, compliance management, and operational stability with the institutional market in mind. Global corporations need a reliable partner in Korea, and domestic financial institutions need corporations that can connect to global networks and technology. That is the background for Bidax forming strategic partnerships with domestic and overseas corporations such as Woori Bank, Galaxy Digital, Circle, and Ripple.
Bidax aims to expand beyond simple custody into a comprehensive digital asset infrastructure for corporations and institutional investors. The roadmap for this can be laid out in three stages. First is secure custody; second is trading, storage, and operation infrastructure that institutions can actually use; third is real-use financial services such as payments, tokenization, and cross-border fund transfers. These three pillars must be connected for digital assets to move from "investment target" to "financial infrastructure.""
─ How do you view the recent trend of the financial sector entering the infrastructure race alongside discussions to institutionalize a won stablecoin?
It's a natural development. Stablecoins are not merely about who issues a single coin; they are an infrastructure competition that includes custody, reserve asset management, settlement, distribution, audit, and compliance management. Going forward, rather than a simple first-mover race, what will matter is who can build a more stable and regulation-friendly structure. Bidax believes that, in this process, a model in which banks, custody operators, Blockchain infrastructure corporations, and payment operators divide roles and cooperate is realistic.
─ The National Assembly and the government plan to grant stablecoin issuance qualifications to bank-led consortia.
We believe the ecosystem will struggle to grow quickly and flexibly with banks alone. While banks can reinforce the credibility of issuance, considering ▲ technological implementation ▲ custody ▲ distribution ▲ on-chain linkage ▲ expansion of overseas networks, a structure in which specialized infrastructure corporations also participate is more desirable. While recognizing the stability of a bank-centered model, we think an open consortium in which custody, technology corporations, and platform operators share roles is suitable as a Korea-style model.
─ What are Bidax's future vision and goals?
Bidax's goal is to start in Korea and grow into an institutional digital asset financial infrastructure corporations representing the Asia-Pacific (APAC) region. As the digital asset market enters the institutional framework, the market will require higher levels of trust, security, regulatory compliance, and global connectivity. Bidax intends to be the company that builds that very foundation.
Ultimately, the goal is to set the standard that "digital assets can be used with the same peace of mind as traditional finance." We want to help Korea become a leading country in the digital financial transition, not just a demand country, by building infrastructure that goes beyond custody to include payments, tokenization, institutional operation, and global network connectivity.