BDACS Launches KRW 1 Korean Won-Backed Stablecoin on Avalanche
According to BDACS, KRW1 is fully collateralized with deposits held at Woori Bank, featuring real-time proof-of-reserves and aiming for domestic and cross-border payments, investments, and regulatory-compliant applications.
BDACS has officially launched KRW1, South Korea’s first fully regulated won-backed stablecoin, developed with Woori Bank and issued on the Avalanche blockchain. Each KRW1 token is fully backed by won in escrow at Woori Bank, with proof-of-reserves verified through real-time banking API integration. The project follows a proof-of-concept validating fiat deposits, token issuance, and blockchain verification. KRW1 is intended for remittances, payments, investments, and public-sector programs such as emergency relief disbursements. BDACS plans to expand KRW1 to multiple blockchains and pursue collaborations with global stablecoin issuers Circle and Tether. The launch coincides with South Korea’s upcoming stablecoin regulatory framework expected in October, as lawmakers debate competing bills from the ruling and opposition parties. Regionally, Japan and Hong Kong are also moving forward with regulated yen- and yuan-backed stablecoins.
- Stablecoin: A cryptocurrency pegged to a stable asset such as a fiat currency, designed to maintain value stability.
- Avalanche Blockchain: A high-performance blockchain platform chosen for KRW1 due to its scalability and regulatory-recognized reliability.
- Proof of Reserves: A verification method that ensures tokens are fully backed by underlying assets, often using real-time API or blockchain integration.