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

Recently, a much-anticipated Web3 event was held in Seoul, South Korea. This two-day Blockchain conference attracted many industry professionals to discuss popular topics such as DePIN, security tokens, stablecoins, custody, and DAOs.

On the second day of the conference's main forum, an audit partner from a security company delivered a speech titled "Enhancing the Security Journey of Emerging Tracks", focusing on the role of stablecoins and custodial services in the current financial ecosystem and their risk management strategies.

The expert emphasized: "Security is not just a defensive measure, but a key infrastructure that connects traditional finance with digital assets. In the face of emerging fields, we must take precautions and actively respond to potential risks."

In his speech, he defined stablecoins as "digital tokens designed to maintain stable value" and pointed out their structural diversity: "including various types such as those pegged to fiat currencies, cash-backed, supported by physical assets (like gold, real estate, silver), and algorithm-driven. Each type faces unique security challenges that require corresponding risk management strategies."

Regarding the issuance and circulation mechanism of stablecoins, he explained: "Reserve assets are usually held in trusted financial institutions, such as banks, and are then issued through smart contracts, ultimately flowing into the market through exchanges and financial institutions." Given the rapid development of the stablecoin market, he emphasized: "We are in a critical period and must accurately identify and systematically respond to its potential risks."

Experts categorize the main risks of stablecoins into three types: reserve risks (such as asset fraud, non-compliant assets, insufficient liquidity); operational risks (such as abuse of permissions, non-compliance with anti-money laundering or customer identification); on-chain risks (including network vulnerabilities, smart contract defects, oracle price manipulation, etc.).

He suggested establishing a comprehensive security response system, including reserve proof, smart contract auditing, governance mechanism review, Blockchain reliability verification, and circulation monitoring, among other aspects.

In addition, experts reviewed the major events in the stablecoin sector over the past decade (2014-2024). According to statistics, there have been a total of 24 publicly disclosed significant incidents, of which 7 were caused by attacks on contracts or on-chain vulnerabilities, 3 were due to design flaws or insufficient reserves leading to depegging events, and 14 were triggered by regulatory or liquidity issues resulting in pegging failures. He emphasized: "We must keep pace with the development of the industry, ensuring that the evolution of regulatory and security systems does not lag behind the growth rate of the market."

In the face of frequent stablecoin risk events, global regulatory agencies are also accelerating the establishment of relevant frameworks. Financial regulatory authorities in multiple countries and regions have successively issued compliance guidance documents for stablecoins, primarily focusing on core issues such as user protection, legal declarations, and financial risk prevention.

In the field of custodial security, the expert also introduced a case study of a client project. He stated: "We provide comprehensive security assessments and consulting services, covering various threats that may arise at all stages of private key generation, storage, recovery, and usage, including penetration testing, source code review, and custodial solution architecture assessment, forming a comprehensive service plan." He added: "The relevant materials for this project have been submitted to the relevant regulatory agencies and several core clients for use."

It is understood that the theme of this Blockchain Conference focuses on investment practices, emphasizing projects with practicality, profitability, and a real user base, highlighting the true value of the projects and their market adaptability. The conference invites global blockchain experts, DAO organizers, practical investors, researchers, and traders to provide in-depth insights from an investor's perspective. The event also features an exhibition area for projects, custody security demonstrations, and offline communication, providing a platform for community members and individual investors to understand and connect with quality Web3 projects.