BDACS Has Launched the First South Korean Won-Backed Stablecoin, KRW1, Powered by Avalanche

BDACS, in partnership with Woori Bank, has launched KRW1, the first fully regulated stablecoin backed by the South Korean won. The KRW1 stablecoin will be issued on the Avalanche blockchain, with plans for use in remittances, payments, and the public sector.

BDACS Launches First Won-Backed Stablecoin, KRW1

Digital asset company BDACS, based in South Korea, has announced the launch of the first stablecoin pegged to the South Korean won, KRW1, in partnership with Woori Bank. The KRW1 stablecoin is collateralized 100 percent by the money in escrow at Woori Bank, one of the leading financial institutions in South Korea. 

BDACS began working on the stablecoin in December 2023, when it applied for a brand trademark for KRW1. The digital asset custodian believes stablecoins will play a central role in the future of the digital economy, so it began building the necessary infrastructure for KRW1 well before formal regulations were in place.

The launch now marks an important move towards South Korea creating a domestic stablecoin, backed by regulatory progressions that will come in the near future. KRW1 is first issued on the Avalanche blockchain, a platform with high performance and security. 

As part of the announcement, BDACS announced the successful test pilot of the KRW1 stablecoin. The company highlighted the role of Avalanche, stating the need for a highly performant and reliable blockchain tailored for a regulatory-compliant stablecoin.

BDACS has plans to extend the reach of the KWR1 into more blockchain networks. The token provides South Koreans with an effective, visible, and economical means of transmitting and storing digital assets backed by their national currency.

KRW1, More Than the Regular Stablecoin

BDACS announced that the launch of KRW1 is much more than the issuance of stablecoin tokens. BDACS has created an elaborate system, which includes issuance and management systems, and a user-friendly application that will assist users of KRW1 in peer-to-peer transfer and validation of transactions.

The infrastructure also includes real-time banking API integration that will provide clear and verifiable evidence of reserves from Woori Bank. This will enhance the confidence and transparency of the stablecoin.

BDACS plans to establish KRW1 as a universal-use stablecoin of remittances, payments, investments, and deposits. The company is also gearing up to roll out KRW1 in public-sector applications, such as low-cost payment and settlement systems when disbursing emergency relief or other high-volume payment systems in the government sector, greatly lowering transaction costs.

The company is already establishing partnerships in both the financial and technology industries and anticipates that KRW1 will be viewed as the technical standard of stablecoins in South Korea in the future under the Digital Asset Basic Act.

This may provide South Koreans with an affordable and more convenient way of transferring money over traditional bank transfers or money remittance services. BDACS intends to assist corporate and institutional users in the future by including KRW1 in other digital platforms.

Regulated Digital Assets Could Take Off in South Korea

The introduction of KRW1 coincides with the South Korean Financial Services Commission (FSC) getting ready to approve a regulatory framework for stablecoins. As part of the Virtual Asset User Protection Act, the FSC will issue its draft rules in October 2025.