South Korean blockchain firm BDACS has launched KRW1, the country's first Korean won-backed stablecoin, marking a significant milestone in the nation's digital asset industry. The stablecoin is issued on the Avalanche blockchain and is fully collateralized by reserves held at Woori Bank, one of South Korea's largest financial institutions.
The launch follows a successful proof-of-concept conducted with Woori Bank earlier this year, which validated technical foundations for issuance, reserve management, and real-time banking API integration. "Our mission is to enhance the connectivity between traditional finance and blockchain technology through KRW1," stated John Doe, CEO of BDACS.
KRW1 is designed to serve multiple use cases including digital payments, remittances, investments, and potential public sector applications. The launch positions South Korea at the forefront of stablecoin innovation and reduces dependence on foreign-backed stablecoins like USDT and USDC.
The timing is strategic, coming ahead of South Korea's Digital Asset Basic Act set to take effect next year, which will formalize regulations around stablecoin issuance, custody, and usage. This partnership with Woori Bank provides institutional legitimacy and could serve as a template for similar initiatives across Asia.