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BDACS introduced KRW1, a won-pegged stablecoin, on Avalanche.
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Each token is fully collateralized with reserves at Woori Bank.
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The project remains in proof-of-concept stage due to unclear regulations.
Stablecoin debut on Avalanche
South Korean custody provider BDACS announced the launch of KRW1, the country’s first stablecoin backed 1:1 by the won. The company chose Avalanche for its reliability in public-sector applications and said KRW1 has passed a proof-of-concept stage.
Banking and reserves
Each KRW1 is backed by reserves held at Woori Bank, one of South Korea’s largest financial institutions. BDACS said real-time banking API integration ensures transparent proof of reserves and verifiable backing.
Potential use cases
KRW1 is designed for payments, remittances, deposits, and public-sector functions like emergency relief disbursements. BDACS is also building a user app that supports P2P transfers and transaction verification.
Regulatory backdrop
The token is not yet publicly circulating. South Korea still lacks a clear framework for stablecoins, though lawmakers are drafting bills and President Lee Jae Myung has endorsed a local stablecoin market to strengthen monetary sovereignty. The central bank, however, insists only licensed banks should issue them.
Looking ahead
BDACS plans to expand KRW1 to other blockchains and collaborate with dollar-backed stablecoins such as USDT and USDC. The firm sees itself as a key player in South Korea’s future stablecoin ecosystem, emphasizing its institutional backing and early technical readiness.
