An analysis found that Hecto Financial’s growth potential is being highlighted as it plays the role of a stablecoin-based settlement infrastructure hub.

Sang-heon Lee (이상헌), an analyst at iM Securities, said in a report released on Sunday that Hecto Financial was listed in February as an official partner of USDC issuer Circle’s stablecoin payment network, the Circle Payments Network (CPN). He added that this secured an execution base for global stablecoin payment and settlement infrastructure, enabling the company to immediately provide services such as CPN-based cross-border settlement for countries where the use of stablecoins is allowed within the institutional system.

Lee said a unified government and ruling party plan for the Digital Asset Basic Act (second-stage legislation) is expected to be finalized soon and is likely to be introduced through legislation. He forecast that if a won stablecoin is legislated and spreads, growth potential could be highlighted as the company would be able to serve as a payment and settlement infrastructure hub by organically linking global settlement standards with wallet infrastructure such as Hecto Wallet One.

He explained that the company is currently implementing a payment structure in which, when overseas consumers pay with stablecoins on domestic platforms, it settles in won (KRW) to domestic merchants (platforms).

Lee also said the company could integrate CPN infrastructure into its existing cross-border settlement service. He forecast that such a blockchain-based settlement network could supplement the time and cost limitations of existing financial networks and significantly expand inflows of overseas clients that have global-to-domestic settlement demand.

The assessment also said profitability improvements will accelerate in connection with expanding global clients. Lee said the company is the top provider of simple cash payments and that the number of subscribers to its account-based in-my-bankbook payment service is increasing. He forecast that, as global clients using foreign currency settlement services expand, growth in services such as in-my-bankbook payments within simple cash payments will accelerate profitability improvements this year.