The IXO Blockchain Conference is held in Seoul, South Korea, focusing on stablecoins and custody security.

From June 24 to 25, the IXO Blockchain Conference was held in Seoul, South Korea. As an important event in the country's Web3 field, this conference attracted numerous entrepreneurs, institutions, and investors to engage in in-depth discussions on cutting-edge topics such as DePIN, security tokens, stablecoins, custody, and DAOs.

At the main forum on the 25th, an audit partner from a security company delivered a speech titled "Elevate Security Journey On Emerging Tracks," focusing on the role and risk control of stablecoins and accomplice services in the current financial landscape.

The speaker emphasized: "Security is not only a defensive measure but also the core infrastructure that connects traditional finance with digital assets. In the face of emerging fields, it is necessary to plan ahead and proactively respond to potential risks."

In the speech, stablecoins are defined as "digital tokens designed to maintain stable value." Their structures are diverse, including fiat-backed, cash-collateralized, physical asset-backed (such as gold, real estate, silver), and algorithm-driven types. Each type faces unique security challenges and risk management needs.

The issuance and circulation mechanism of stablecoins typically involves three aspects: reserve assets, smart contracts, and market circulation. In the context of the rapid expansion of the stablecoin market, accurately identifying and systematically responding to potential risks has become particularly important.

The main risks of stablecoins can be divided into three categories: reserve risks (such as asset fraud, non-compliant assets, insufficient liquidity), operational risks (such as abuse of authority, non-compliance with AML or KYC), and on-chain risks (including network defects, smart contract vulnerabilities, oracle price manipulation, etc.).

To address these risks, the industry is establishing a multi-dimensional security response system, including reserve proof, smart contract auditing, governance mechanism auditing, Blockchain reliability verification, and circulation monitoring.

The speaker also reviewed the significant events related to stablecoins over the past decade (2014-2024). According to statistics, there have been a total of 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. This highlights the industry's need to continuously update its security systems to keep pace with market developments.

In response to the frequent risks associated with stablecoins, global regulatory agencies are accelerating the development of regulatory frameworks. Financial regulatory agencies in multiple countries and regions have issued compliance guidelines for stablecoins, focusing on core issues such as user protection, legal statements, and financial risk prevention.

The speaker also introduced an internal simulation research project "Chocolate Coin". This is a standard stablecoin model designed based on the ERC-20 standard, covering 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 provides a comprehensive security assessment and consulting service covering multiple threats that may arise at various stages such as private key generation, storage, recovery, and usage. It includes penetration testing, source code review, and evaluation of custody solution architecture. Relevant materials from this project have been submitted to the Hong Kong Securities and Futures Commission and several core clients for use.

The theme of this IXO Blockchain Conference focuses on investment practices, emphasizing the real value of projects and their market adaptability. The conference invites global blockchain experts, DAO organizers, practical investors, researchers, and traders to provide high-quality insights from an investor's perspective. The event also includes interactive sessions such as project showcase areas, custody security demonstrations, and offline networking, providing a platform for community members and individual investors to understand and engage with quality Web3 projects.