The Identity of the Digital Dollar Rail Picked by BlackRock! Explosive Wealth Migration Led by RWA and Stablecoins

Summary

Seoul National University Professor Lee Jong-seop explains how stablecoins function as digital dollar rails for asset tokenization. He argues that Korea needs a hybrid approach combining CBDC, deposit tokens, and private won stablecoins, and that a successful won stablecoin ecosystem could eventually drive demand for Korean government bonds. He highlights use cases in cross-border remittances, e-commerce, and fintech innovations like BNPL.

• Stablecoins are digital dollar rails that bring fiat liquidity onto public blockchains.
• Asset tokenization, especially of U.S. Treasuries, creates payment infrastructure demand for stablecoins.
• Korea cannot copy the U.S. model due to less liquid government bond markets and weaker global demand for won.
• A Korean won stablecoin would likely start with deposit collateral and later expand to short-term government bonds.
• Such a stablecoin ecosystem could boost regional bank deposits and enable more local lending.
• Cross-border remittance and e-commerce payments are key initial use cases for a won stablecoin.
• Platform companies could benefit from lower transaction costs and offer innovative payment services like BNPL.