The first Korean Won-backed stablecoin has been launched! BDACS (Busan Digital Asset Custody Services) has become the first South Korean custodian to launch the stablecoin on the Avalanche blockchain.
Woori Bank has backed the newly launched stablecoin, dubbed KRW1. According to BDACS’s press release dated 18 September 2025, Korean Won deposits back the KRW1 stablecoin 1:1.
Per the press release, BDACS confirmed that it completed a full proof of concept for the KRW1 stablecoin, validating its technical viability. Particularly, the firm mentioned Avalanche’s reliability and security as key reasons for choosing the network.
“Every KRW1 is backed 1:1 with won held in escrow at Woori Bank,” Avalanche noted on X.
Every KRW1 is backed 1:1 with won held in escrow at Woori Bank.
With real-time API integration, reserves are verifiable instantly, setting a new benchmark for transparency and trust as Korea prepares its Digital Asset Basic Act.
— Avalanche
(@avax) September 18, 2025
Avalanche’s integration with banks, institutions, and end-users has enabled BDACS to launch KRW1, designed for scalable public sector use, thereby strengthening Avalanche’s footprint in Asia.
“Avalanche provides the performance, security, and scale to bring it to life,” BDACS confirmed, highlighting its infrastructure’s suitability for real-world deployments.
Avalanche’s expansion into Asia follows its recent announcement to establish two AVAX reserve facilities in the US, underscoring its two-pronged expansion strategy.
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How Does The KRW1 Fit Into The Korean Digital Asset Market?
Well, for starters, BDACS is positioning the KRW1 as a low-cost payment settlement solution for public-sector programs, as confirmed by Avalanche.
By significantly reducing transaction fees, KRW1 could emerge as a cornerstone for the South Korean digital asset market and become a technical yardstick for stablecoin infrastructure in South Korea.
Harry Ryoo, CEO of BDACS, iterated, “BDACS is not just a custody service provider. We are building the backbone of the digital asset market, serving corporate, institutional, and public-sector partners alike.”
Further, to support this objective, BDACS has developed a full-stack framework for the KRW1 stablecoin, covering issuance, management and transaction verification. Moreover, the stablecoin features real-time API integration with Woori Bank, enabling instant and transparent proof of reserves.
For now, however, BDACS has clarified that the KRW1 stablecoin is still in its proof-of-concept phase and has not entered public circulation.
“Currently in a pilot phase following a full PoC, KRW1 marks an important step toward regulated, bank-integrated digital money in Korea,” BDACS stated.
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Legislative Push For A Won-Backed Stablecoin In South Korea
KRW1’s launch comes amid a broader wave of stablecoin activity in South Korea’s finance sector.
While regulators in the country debate several bills related to stablecoin regulation, major financial institutions have started filing trademark applications for won-backed stablecoin ticker symbols.
Kakao Bank, Kookmin Bank, and the Industrial Bank of Korea have all filed trademarks for won-backed stablecoins.
Stablecoins are such a big topic right now, this is the first public Korean Won stablecoin pilot with a Korean Bank pic.twitter.com/MOdfN7tzcI
— Coop
(@coopernicus01) September 18, 2025
Meanwhile, Tether executives recently met with Shinhan Bank officials, signalling growing interest from global players in Korea’s evolving digital currency landscape.
In the backdrop, South Korea is pushing for a sovereign stablecoin framework, with President Lee Jae Myung backing the development of local currency-pegged digital assets to reinforce monetary control.
However, the Bank of Korea has cautioned that only licensed banking institutions will be allowed to issue stablecoins. This step by the central bank aims to curb systemic risks from unchecked digital currency proliferation.
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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.
