South Korea’s First Won-Pegged Stablecoin KRW1 Launches on Avalanche

South Korea’s crypto custody service provider BDACS announced Thursday that it has launched KRW1, a stablecoin fully backed by the South Korean won, on the Avalanche network. BDACS said in a press release that it successfully completed a full proof of concept (PoC) of KRW1’s technical viability. The company added that it selected Avalanche for the network’s reliability and security in public-sector use.

Each KRW1 stablecoin is fully collateralized with the won cy held at Woori Bank, one of the largest banking institutions in South Korea. BDACS noted that real-time banking API integration with Woori ensures transparent and verifiable proof of reserves. “The launch extends far beyond token issuance,” the company said in the release. “BDACS has developed a comprehensive framework, including issuance and management systems as well as a user-facing app supporting peer-to-peer transfers and transaction verification.”

The company said it aims to position KRW1 as a globally-used stablecoin for remittances, payments, investments and deposits, with further plans to deploy the stablecoin in public-sector applications such as settlement systems for emergency relief disbursements. BDACS also plans to expand KRW1 on to other blockchains to improve interoperability, and said it is exploring potential collaborations with U.S. dollar stablecoins such as USDT or USDC.

Meanwhile, BDACS noted that the KRW1 launch remains at the PoC stage, and thus the stablecoin is not circulated publicly and does not violate local regulations. South Korea currently lacks a regulatory framework for stablecoins, although the country is putting efforts to establish one.