The IXO Blockchain Conference is held in Seoul, South Korea, focusing on cutting-edge trends in Web3.

Recently, Seoul, South Korea hosted a two-day IXO Blockchain Conference, an important event in the country's Web3 field, attracting numerous industry professionals. The conference conducted in-depth discussions on popular topics such as DePIN, security tokens, stablecoins, custody, and DAOs.

At the main forum of the conference, an audit partner from a security company delivered a keynote speech titled "Enhancing the Security Journey of Emerging Tracks," focusing on the role of stablecoins and custody services in the financial ecosystem and risk management. The speaker emphasized that security is not only a defensive measure but also a key infrastructure connecting traditional finance and digital assets. He called on the industry to proactively layout and actively respond to potential risks when facing emerging fields.

In the speech, stablecoins are defined as "digital tokens designed to maintain a stable value." Their structures are diverse, including fiat-collateralized, cash-backed, physical asset-supported, and algorithmic types. Each type faces unique security challenges and requires targeted risk management strategies.

Regarding the issuance and circulation mechanisms of stablecoins, the speaker explained: "Reserve assets are usually held in trustworthy financial institutions, issued through smart contracts, and then flow into the market via exchanges and financial institutions." He emphasized that in the rapidly developing stablecoin market, accurately identifying and systematically responding to potential risks is crucial.

The main risks of stablecoins can be categorized into three types: reserve risk (such as asset fraud, non-compliant assets, insufficient liquidity), operational risk (such as abuse of authority, non-compliance with AML or KYC), and on-chain risk (including network defects, smart contract vulnerabilities, oracle price manipulation, etc.). To address these risks, the speaker recommends building a multi-layered security response system, including reserve proof, smart contract audits, governance mechanism audits, Blockchain reliability verification, and circulation monitoring.

The speaker also reviewed significant events related to stablecoins over the past decade (2014-2024). According to statistics, there have been 24 publicly disclosed major incidents, including 7 attack incidents caused by contract or on-chain vulnerabilities, 3 de-pegging incidents due to design flaws or insufficient reserves, and 14 anchoring failure incidents caused by regulatory or liquidity issues. He emphasized the need to keep regulatory and safety systems in sync with industry development to ensure they do not lag behind market growth.

In the face of frequent stablecoin risk events, global regulatory agencies are accelerating the development of relevant frameworks. Financial regulatory agencies in multiple countries and regions have successively issued compliance guidance documents for stablecoins, focusing on core issues such as user protection, legal statements, and financial risk prevention and control. Security companies in the industry are also actively participating, maintaining close cooperation with regulatory agencies, and sharing relevant insights in a timely manner to promote the industry compliance process.

The speaker also introduced a case study of an internal simulation research project "Chocolate Coin". This is a standard stablecoin designed based on the ERC-20 standard, encompassing complete components such as smart contracts, white papers, risk management policies, and redemption mechanisms, aimed at providing a practical model for global regulators and practitioners to verify risk factors and policy feasibility.

In the field of custody security, the speaker shared a case study of a client project. This project provided a comprehensive security assessment and consulting services covering all stages of private key generation, storage, recovery, and usage, including penetration testing, source code review, and assessment of custody solution architecture. The results of this project have been submitted as compliance materials to the Hong Kong Securities and Futures Commission and used by several core clients.

The IXO Blockchain Conference focuses on investment practices, emphasizing projects with feasibility, profitability, and a real user base, highlighting the true value and market adaptability of the projects. The conference invites global blockchain experts, DAO organizers, practical investors, researchers, and traders to provide high-quality insights from the investors' perspective. The event also features an exhibition area for projects, custodial security demonstrations, offline communication, and other interactive sessions to provide a platform for community members and individual investors to understand and engage with quality Web3 projects.