By Kang Jae-eun

SEOUL, July 23 (Yonhap) -- South Korea's strong technology ecosystem puts the country in a great position for the next evolution of financial systems, and Fireblocks hopes to support such a transition, the chief of the company said.

Michael Shaulov, the chief executive officer (CEO) of the digital asset infrastructure and systems developer, made the remarks in an interview with Yonhap News Agency on Tuesday, saying the country is entering a "stablecoin inflection point" at a speed not seen in other Asia-Pacific markets.

"Our goal is really to make sure that we are servicing the Korean market."

Michael Shaulov, the chief executive officer (CEO) of Fireblocks, as provided by the company (PHOTO NOT FOR SALE) (Yonhap)

Founded in 2018, Fireblocks provides secure digital asset infrastructure that enables banks, payment providers and enterprises to build, manage and scale digital asset businesses safely.

The company now supports more than 2,400 organizations globally, including over 100 banks and hundreds of payment companies, and is also working with enterprises that want to use stablecoins for payments or tokenize real-world assets.

Shaulov described South Korea as one of the most "unique" markets for Fireblocks, as the idea behind the company's platform was inspired by the country.

"In my previous part of my career, back in 2017, our team did some of the investigation that happened with Lazarus, which is kind of the North Korean hacking team," Shaulov said.

"They hacked four different exchanges back in 2016 and 2017 in South Korea, and we held part of the investigation back then, and that actually was the first time that we understood that a solution like Fireblocks is required."

According to Shaulov, crypto has a large penetration rate on the consumer and retail side here in South Korea, but the asset was not seen as "feasible" for entities on the institutional side to get involved in.

"(This) is clearly something that is currently changing ... So similar to what we've seen in other markets, like Japan and Europe," he said.

Late last year, Fireblocks hired a local team in South Korea, after servicing the country from its Asia-Pacific hub in Singapore. It is now working with some of the largest players in the Korean financial sector, such as NongHyup Bank and Shinhan Bank, to be involved in the "most interesting and exciting initiatives" in Asia's fourth-largest economy, the CEO explained.

Michael Shaulov, the chief executive officer (CEO) of Fireblocks, is seen speaking on stage at an event in this undated file photo provided by the company. (PHOTO NOT FOR SALE) (Yonhap)

Shaulov predicted that the next phase of digital assets will be shaped by how they become integrated into the broader financial system, such as tokenized assets and on-chain settlement, where stablecoins play a pivotal role.

According to Fireblocks, stablecoins now represent more than 65 percent of value transferred across its network over the past 12 months.

When asked about South Korea's move to create stablecoins pegged to the Korean won, the CEO said it would create new opportunities for Korean businesses, given the country's role as a highly connected and export-driven economy.

"The potential is not just about creating a new digital asset, but about improving how businesses move value, for example, enabling faster cross-border settlement, reducing friction in international transactions and creating new forms of programmable payments."

Looking forward, Fireblocks plans to continue expanding the adoption of digital assets and stablecoins as an infrastructure provider, with the goal of increasing the number of clients by around 400 to 600 and transaction volume to up to US$7 trillion by the year's end.

"It's about time that ... finance will be truly compatible with the internet," he said. "Our mission is to make sure that we are able to help financial institutions and enterprises to adopt that securely and simply."

fairydust@yna.co.kr
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