BDACS Brings First Korean Won Stablecoin KRW1 to Market, Linking Banks and Blockchain

South Korea Sees First Won-Backed Stablecoin Launch On Avalanche Blockchain

BDACS, a Seoul-based digital asset custodian, has launched KRW1, South Korea’s first stablecoin fully backed by the national currency.

Each token is matched 1:1 with Korean won held in escrow at Woori Bank, offering users real-time verification of reserves through integrated banking APIs, according to Avalanche.

How KRW1 Connects Blockchain With Banking

The stablecoin runs on the Avalanche blockchain, chosen for its speed, performance, and security.

Justin Kim, Head of Asia at Ava Labs, said,

“The Avalanche technology and its growing ecosystem of real-world assets will support BDACS and Woori Bank to deliver a trusted, innovative solution for Korea’s digital economy.”

The launch follows a successful proof-of-concept, where the technical viability and collateral transparency of KRW1 were fully tested with Woori Bank.

BDACS Builds Infrastructure For Payments And Public Programs

Beyond issuance, BDACS has developed a complete framework for KRW1, including transaction management, peer-to-peer transfers, and instant verification of reserves.

The company plans to use the stablecoin for low-cost payments, cross-border remittances, and public-sector programs such as emergency relief disbursements.

CEO Harry Ryoo said,

“We are building the backbone of the digital asset market, serving corporate, institutional, and public-sector partners alike.”

Local Stablecoin Demand Gathers Momentum

KRW1 enters a growing domestic market where several financial institutions, including Kakao Bank, Kookmin Bank, and the Industrial Bank of Korea, have filed trademarks for won-backed digital tokens.

Earlier this month, Tether executives reportedly met with Shinhan Bank officials to discuss stablecoin initiatives.

Surveys indicate strong public interest in locally issued coins as alternatives to dollar-backed tokens like USDT and USDC.

Regulatory Framework On The Horizon

The Financial Services Commission (FSC) is preparing rules for stablecoins under the second phase of the Virtual Asset User Protection Act, expected in October.

The legislation will cover issuance standards, collateral management, and internal controls, providing a legal framework for tokens like KRW1 to operate safely within South Korea’s financial system.

Avalanche Expands Its Asian Footprint With KRW1

Avalanche highlighted the KRW1 launch as part of its broader strategy to integrate blockchain with real-world financial systems in Asia.

The firm recently announced plans to establish two AVAX reserve companies in the United States, reflecting its push for a global presence while supporting regional partners like BDACS.

KRW1 Could Set The Standard For Domestic Stablecoins

With full bank backing, real-time API integration, and plans for use in payments, remittances, and public programs, KRW1 aims to provide a reliable, compliant digital asset for South Korea.

BDACS’s efforts place it at the forefront of the emerging domestic stablecoin market, potentially shaping how digital money interacts with traditional finance in the country.