Recently, game companies are entering the stablecoin (a coin linked to fiat currency) market. This is because discussions about the legislation of stablecoins have intensified under President Lee Jae-myung. However, some critics argue that stablecoins lack substance due to regulatory uncertainties and insufficient revenue validation.
Stablecoins are cryptocurrencies linked to stable assets like the dollar or won, minimizing price fluctuations. The reason game companies are entering the stablecoin market is to create a new game economic ecosystem based on liquidity and stability. Unlike cryptocurrencies with high value volatility, stablecoins retain relatively stable values as they have exchange values pegged to fiat currencies. In the long term, there is a high possibility that game users will increase their economic activities and establish a new game economic ecosystem.
On the 12th, according to the gaming industry, Nexus recently registered the won-based stablecoin "KRWx" on the Binance-operated BNB Chain and applied for related trademarks in Korea. Nexus announced plans to sequentially issue other stablecoins linked to the dollar, euro, yen, and Hong Kong dollar, namely "USDx," "EURx," "JPYx," and "HKDx," starting with KRWx. Although these stablecoins are not currently issued and circulated, preparations are underway to be ready for immediate launch depending on future domestic and international regulatory changes and market conditions.
Nexus has been focusing on its blockchain game business based on its own blockchain platform, "Kross," since CEO Jang Hyun-guk, who previously led the "WEMIX" project at Wemade, took office earlier this year. In April, it officially launched the first version of its mainnet, "Adventure," and began full-scale platform operations, while in June, it signed a custody contract with the domestic virtual asset custodian, KODA.
Wemade also recently officially introduced the U.S. dollar-based stablecoin "USDC.e" on its own blockchain platform, "WEMIX 3.0." USDC.e is a stablecoin developed to allow the use of USDC issued on the Ethereum network within the WEMIX 3.0 environment and operates on a "burn after issuance" model. When USDC is transferred to WEMIX 3.0 through bridging, the USDC on the Ethereum network is burned, and the same quantity of USDC.e is newly issued on the WEMIX 3.0 mainnet. On the 7th, Wemade applied for trademarks related to two stablecoins, "KRWWMX" and "WEKRW."
Wemade has been dedicated to building a blockchain ecosystem through WEMIX. Since entering the virtual asset business in 2018, it introduced the P2E (play-to-earn) model through "Mir 4 Global" and has expanded its ecosystem, which includes non-fungible tokens (NFTs), decentralized finance (DeFi), and decentralized organizations (DAOs), based on "WEMIX 3.0." However, earlier this year, a large-scale hacking incident led to the suspension of WEMIX transaction support on domestic exchanges. As a result, analysts within the industry speculated that Wemade would expand its ventures into stablecoin-related businesses.
NHN is expanding its market into the virtual asset ecosystem. NHN, in collaboration with Bithumb, held a mobile poker game event, "Hangame Double A Poker," and experimented with a reward-based event structure connecting the virtual asset ecosystem and gaming without issuing its own tokens. NHN's fintech subsidiary, NHN KCP, recently applied for trademarks for 11 types of stablecoin issues, including "KRWPS," "KSKOR," and "KSKRW." Although a specific issuance schedule has not yet been revealed, it appears that the group is reviewing projects related to the virtual asset ecosystem. Industry insiders believe that NHN may introduce a stablecoin-based gaming reward system in the casino genre.
Recently, the expectation of policies has increased regarding game companies entering the relevant market. President Lee Jae-myung promised during his election campaign to develop measures for issuing and distributing won-based stablecoins. Last month, the National Assembly proposed the "Digital Assets Basic Act," which encompasses digital assets and related industries, and discussions on legislation have begun. In the United States, the stablecoin regulation bill, the "GENIUS Act," has passed the Senate, signaling a trend towards global institutionalization.
However, there are also concerns. In the current situation where P2E is still illegal in Korea, the entry of game companies into the stablecoin sector is viewed as unclear in substance. Some critics also expressed concerns about "theme stock hyping." Additionally, the Bank of Korea's conservative stance towards stablecoin adoption adds pressure. The Bank believes that if stablecoins are indiscriminately issued outside of the banking sector, there could be increased instability in the overall financial system due to inadequate reserve management, issuer insolvency, and insufficient consumer protection.
Game companies face significant burdens in terms of reserve management systems, issuer credibility, and risk response capabilities to engage in the stablecoin business. While some game companies have applied for trademarks in preparation for issuance, there are cautious opinions that it remains unclear whether these efforts will lead to commercialization.
An industry insider noted, "As discussions related to stablecoins are growing not only domestically but also globally, it appears that game companies are moving proactively to institutionalize them and capture the market." However, they also added, "It is essential to avoid leveraging the stablecoin business as a tool for stock price manipulation, regardless of technological development."