BDACS Introduces Won-Backed Stablecoin KRW1 on Avalanche
The inaugural Korean Won-backed stablecoin has been unveiled! BDACS (Busan Digital Asset Custody Services) is the pioneering South Korean custodian to launch this stablecoin on the Avalanche distributed ledger.
Woori Bank has provided price floor for the new stablecoin, named KRW1. Per BDACS’s press release issued on 18 September 2025, deposits in Korean Won provide 1:1 backing for the KRW1 stablecoin.
According to the press release, BDACS has successfully finished a complete proof of concept for the KRW1 stablecoin, confirming its technical feasibility. The firm specifically noted the reliability and protection offered by Avalanche as crucial factors for selecting the protocol.
“Each KRW1 is supported 1:1 with won that is held in escrow at Woori Bank,” Avalanche conveyed on X.
Each KRW1 is supported 1:1 with won that is held in escrow at Woori Bank.
Thanks to real-time API integration, reserves can be verified instantly, establishing a new standard for transparency and trust as Korea anticipates its Digital Asset Basic Act.
— Avalanche
(@avax) September 18, 2025
Avalanche’s partnerships with banks, institutions, and end-users have allowed BDACS to introduce KRW1, which is intended for scalable use in the public sector, thus enhancing Avalanche’s presence in Asia.
“Avalanche delivers the performance, security, and scalability needed to realize this project,” BDACS affirmed, emphasizing the infrastructure’s appropriateness for real-world applications.
Avalanche’s push into Asia follows its recent update to create two AVAX reserve facilities in the US, highlighting its dual expansion strategy.
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What Role Does The KRW1 Play In The Korean Digital Asset Landscape?
Firstly, BDACS is positioning KRW1 as a cost-effective payment settlement solution for public sector programs, as affirmed by Avalanche.
By markedly lowering transaction fees, KRW1 could potentially become a foundational element for South Korea’s digital asset market and set a technical standard for stablecoin infrastructure in the country.
Harry Ryoo, CEO of BDACS, stated, “BDACS is more than just a custody service. We are constructing the backbone of the digital asset market, catering to corporate, institutional, and public-sector clients alike.”
To further this goal, BDACS has constructed a comprehensive framework for the KRW1 stablecoin, encompassing issuance, management, and transaction verification. Additionally, the stablecoin boasts real-time API integration with Woori Bank, facilitating immediate and transparent proof of reserves.
However, BDACS has made it clear that the KRW1 stablecoin remains in its proof-of-concept stage and has not yet entered the public market.
“Currently in a pilot phase following the completion of a full PoC, KRW1 represents a significant milestone toward regulated, bank-integrated digital currency in Korea,” BDACS remarked.
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Legislative Momentum For A Won-Backed Stablecoin In South Korea
The launch of KRW1 occurs amidst a wider trend of stablecoin advancements within South Korea’s financial sector.
As local regulators deliberate on various bills concerning stablecoin oversight, key financial institutions have begun applying for trademarks related to won-backed stablecoin ticker symbols.
Kakao Bank, Kookmin Bank, and the Industrial Bank of Korea have all submitted trademark applications for won-backed stablecoins.
Stablecoins are a huge subject at the moment, this is the first public Korean Won stablecoin pilot with a Korean Bank pic.twitter.com/MOdfN7tzcI
— Coop
In a related development, Tether executives recently engaged with officials from Shinhan Bank, indicating an increasing interest from international entities in Korea’s shifting cryptocurrency environment.
Simultaneously, South Korea is advocating for a framework surrounding sovereign stablecoins, with President Lee Jae Myung supporting the creation of digital assets pegged to local currency to enhance monetary control.
Nonetheless, the Bank of Korea has warned that only licensed banking entities will be permitted to issue stablecoins, a measure aimed at reducing systemic risks stemming from uncontrolled digital currency growth.
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Key Takeaways
- BDACS becomes the first custodian to launch a won-backed stablecoin, KRW1 in South Korea
- KRW1 features real-time API integration with Woori Bank, enabling instant and transparent proof of reserves.
- BDACS clarified that the KRW1 stablecoin is still in its proof-of-concept phase and has not entered public circulation
The post BDACS Launches Won-Backed Stablecoin KRW1 On Avalanche appeared first on 99Bitcoins.
