Korea’s first won-backed stablecoin KRW1 goes live on Avalanche

 
BDACS announced that it has completed the proof-of-concept (PoC) procedure to demonstrate the infrastructure, though commercial use is not yet available. The company plans to position KRW1 as a universal stablecoin for payments, remittances, deposits, and other applications.

“We are building the backbone of the digital asset market, serving corporate, institutional, and public-sector partners alike,” said Harry Ryoo, CEO of BDACS. “KRW1 marks a turning point for our company, and we believe it will become a foundational asset for the digital economy.”

Justin Kim, Head of Asia at Ava Labs, noted: “The successful test pilot of KRW1 demonstrates the need for a high-performance, reliable blockchain tailored for a regulatory-compliant stablecoin.” He stressed that Avalanche will support BDACS and Woori Bank in launching solutions for Korea’s digital economy.

BDACS secured the trademark for its KRW1 stablecoin brand in December 2023, anticipating growth in stablecoins and the digital economy. Its proof-of-concept follows Korea’s ongoing work on a comprehensive digital-asset law targeted for 2026.The proposed framework, called the Digital Asset Basic Act (DABA), aims to establish clear rules for Korean won-pegged stablecoins. This includes licensing requirements for issuers, maintaining adequate reserves (one-to-one backing with high-quality, liquid assets), and ensuring users’ rights to redeem stablecoins for fiat currency.

DABA is being developed to work alongside the existing Act on the Protection of Virtual Asset Users (VAUPA), which came into effect in July 2024 and sets regulatory standards for Virtual Asset Service Providers (VASPs), such as crypto exchanges.