- Avalanche powers BDACS’ KRW1, South Korea’s first won-backed stablecoin.
- KRW1 fully collateralized by Korean won at Woori Bank, ensuring stability for users.
- BDACS aims to use KRW1 for low-cost payments, becoming a standard in South Korea’s digital economy.
South Korean digital asset custody company BDACS has today announced the commercialization of KRW1, the first stablecoin backed by the Korean won. The virtual currency runs on the Avalanche blockchain, promising to fully take over 1:1 reserve collateralization with deposits secured by Woori Bank. This is a landmark development that points to an era of regulated cryptocurrency in Korea.
It comes after a successful proof of concept (PoC) was completed to prove the stability coin’s technical feasibility. As of now, KRW1 is in the testing phase and going forward will be extended to low-value payment and settlement systems. BDACS views KRW1 as integral to the future of the digital economy in South Korea.
Avalanche Powers KRW1 with Speed and Security
The blockchain that supports KRW1 is Avalanche, which provides the necessary performance and trust needed for stablecoin adoption. By establishing links with the banks the users and implementing agencies, BDACS is considered their reliable partner. “Avalanche is not only fast, but also secure and the technology we need to bring this project to life,” said Justin Kim, Asia Lead at Ava Labs.
Also Read: South Korea’s Top 8 Banks Unite for Won-Backed Stablecoin Push
KRW1 is fully collateralized by Korean won, deposited in escrow at Woori Bank. And all of that further underwrites the stability of the stablecoin making it a trusted digital currency for the people in South Korea. Inclusion in Avalanche Both of these offerings reinforce the stability of the stablecoin, offering a private means for conducting secure, high-performance transactions between traders.
The debut of KRW1 represents a significant achievement for BDACS, which seeks to bring scalable, institutional-quality blockchain infrastructure to market. To that end, the Company has set its sights to provide corporate, institutional and government partners with this unique digital currency solution.
BDACS Sets the Standard for South Korea’s Digital Finance Future
BDACS has also trademarked its homegrown stablecoin in December 2023, signaling further that the company is serious about digital finance. Meanwhile, the company is emphasizing KRW1 as a payment method for government services and transactions it operates, reducing its fee at the same time. This in turn means KRW1 could serve as a standard for stablecoin issuance in South Korea.
The AVAX reserve expanding into Asia, with the revelation of two AVAX operating companies being set up in the US. This will allow BDACS to be supported and bring Avalanche blockchain further into the international digital asset space.
Stablecoin fever is reaching South Korea as the national post service and certain banking organizations within the country are discussing the possibility of launching their own such assets. This indicates that the stablecoin game is a-changing in the area. Tether executives also held face-to-face meetings with representatives from Shinhan Bank earlier this month to discuss more collaboration in stablecoin space.
The KRW1 will be the latest move of its kind in South Korea, as the country readies itself for digital assets this year. It provides a safer and more convenient means of payment for South Koreans, and may have implications for global trends in digital currencies.
With ongoing collaborations and by making progress in developing blockchain technology, BDACS along with Avalanche will play a big role as the leading part of this Korea’s digital finance future.
The onboard of KRW1 is a significant step forward in the transformation of South Korea’s burgeoning digital economy. Leveraging Avalanche’s tech, BDACS is cementing their presence as an elite in the digital asset space. If more institutions join the stablecoin race, KRW1 could compete in domestic and international digital finance markets.
Also Read: Crypto-Fueled Stablecoin Rally Makes South Korea Asia’s Top Market 2025
