- A South Korean digital asset custody firm, BDACS, has launched KRW1, a stablecoin fully backed by the South Korean won, on the Avalanche blockchain.
- Each KRW1 token is backed one-to-one with reserves held at Woori Bank, one of the country’s largest commercial banks, with a real-time verification system to ensure transparent proof of reserves.
- The stablecoin is currently in a proof-of-concept stage and is not in public circulation, as South Korea has yet to finalise a regulatory framework for stablecoins.
BDACS, a South Korean digital asset custody provider, announced the launch of KRW1, a stablecoin fully backed by the South Korean won and issued on the Avalanche blockchain.
According to a press release published Thursday, Avalanche was chosen for its “stability and track record” in public-sector integrations, according to BDACS.
The Avalanche technology and its growing ecosystem of real-world assets will support BDACS and Woori Bank to deliver a trusted, innovative solution for Korea’s digital economy.
Justin Kim, Head of Asia at Ava Labs.Each KRW1 token is backed one-to-one with reserves held at Woori Bank, one of the country’s largest commercial banks, allowing real-time verification of collateral, offering what BDACS describes as transparent proof of reserves.
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KRW1 Pilot Marks Step Toward Regulated Digital Money
Beyond the token itself, BDACS has developed supporting infrastructure, including issuance and management systems and a user-facing app for transfers and transaction tracking. The company said it intends KRW1 to serve global use cases across payments, remittances, deposits, and investments.
“BDACS is not just a custody service provider,” said Harry Ryoo, CEO of BDACS. “We are building the backbone of the digital asset market, serving corporate, institutional, and public-sector partners alike. KRW1 marks a turning point for our company, and we believe it will become a foundational asset for the digital economy.”
The token has passed a proof-of-concept stage demonstrating its technical viability, but it is not yet trading publicly—largely because South Korea has not yet established a regulatory framework for stablecoins, though lawmakers are reviewing draft bills.
Currently in a pilot phase following a full PoC, KRW1 marks an important step toward regulated, bank-integrated digital money in Korea.
BDACSPresident Lee Jae Myung has publicly supported the development of a local stablecoin market as part of efforts to reinforce monetary sovereignty. The Bank of Korea has taken a more restrictive position, warning that only licensed banks should be allowed to issue such assets to avoid destabilising capital flows.
BDACS said it is positioning itself as an early mover in this emerging market. It also plans to expand KRW1 across additional blockchains for interoperability and is exploring collaborations with major U.S. dollar stablecoins such as USDT and USDC.
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