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BDACS has launched KRW1, a South Korean won-pegged stablecoin issued on the Avalanche blockchain and fully backed 1:1 with reserves held at Woori Bank.
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The rollout comes as regulators prepare stablecoin rules under the Virtual Asset User Protection Act, positioning South Korea to compete in the global stablecoin market.
South Korea has launched KRW1, a stablecoin pegged 1:1 to the South Korean won and issued on the Avalanche blockchain. The move signals both the growing momentum of domestic stablecoins and Avalanche’s deeper expansion into Asian markets.
The Seoul-based digital asset firm BDACS announced the rollout of KRW1 on September 17, following a successful proof-of-concept in partnership with Woori Bank, one of South Korea’s leading financial institutions.
Each KRW1 token is fully collateralized with won held in escrow at Woori Bank, with real-time proof-of-reserves provided through API integration. This approach ensures transparency and bolsters confidence in the token’s stability.
According to BDACS, Avalanche was chosen for KRW1’s initial issuance due to its high performance and security, with plans to expand the token to additional blockchains in the future. Beyond technical deployment, BDACS has created a management framework and applications enabling peer-to-peer transfers, transaction verification, and integration across payments and remittances.
The company also envisions KRW1 being used for investment products and even government programs such as emergency relief disbursements.
“KRW1 marks a turning point for our company, and we believe it will become a foundational asset for the digital economy,” said BDACS CEO Harry Ryoo. “We are building the backbone of the digital asset market, serving corporate, institutional, and public-sector partners alike.”
The launch follows earlier pilots such as KRWIN, developed by fanC and Initech, which debuted in August as South Korea’s first won-pegged stablecoin trial. Local surveys have highlighted demand among Korean users, who often rely on dollar-backed tokens like Tether (USDT) and USD Coin (USDC) for trading and payments.
Domestic initiatives such as KRW1 aim to provide a local alternative and reduce dependence on foreign-backed stablecoins.
Major banks have also expressed interest in the sector, with a consortium of eight financial institutions working on a joint venture for a won-based digital asset. These initiatives reflect growing concern that, without local options, dollar-denominated stablecoins could dominate South Korea’s financial ecosystem.
The regulatory environment is also moving quickly. South Korea’s Financial Services Commission (FSC) is drafting comprehensive rules for stablecoins, expected in October as part of the second phase of the Virtual Asset User Protection Act. The framework will address issuance requirements, collateral management, and internal control systems, providing much-needed clarity for projects like KRW1.
South Korea’s efforts mirror similar moves in Japan and Hong Kong, where regulators are shaping supportive policies for the sector. Global competition has intensified following the U.S. rollout of stablecoin legislation, further pushing Asian markets to establish their own frameworks.
While dollar-pegged stablecoins continue to dominate globally, the introduction of KRW1 positions South Korea as a serious contender in the regional stablecoin race. With institutional backing, regulatory momentum, and Avalanche’s blockchain infrastructure, KRW1 could serve as a cornerstone in the country’s digital economy and strengthen Asia’s role in the evolving stablecoin landscape.
