BDACS Launches KRW1 Stablecoin on Avalanche Blockchain

South Korean digital asset custodian BDACS has launched the first won-backed stablecoin, KRW1, on the Avalanche blockchain. KRW1 is fully collateralized with Korean won deposits at Woori Bank.

KRW1 Stablecoin Details

KRW1 is backed 1:1 by won in escrow at Woori Bank, a leading South Korean financial institution.
The launch follows a successful Proof of Concept (PoC) to test its technical viability.
BDACS aims to use Woori Bank's real-time banking API for transparency and verifiable Proof-of-Reserve (PoR).
A comprehensive framework includes issuance and management systems, plus a user app for transfers and transaction verification.
Long-term goals include global payments, remittances, investments, and public-sector applications such as emergency relief disbursements.

Avalanche Blockchain

Avalanche's reputation for reliability and security attracted BDACS to launch KRW1 on this network.
Other projects like Circle and Defrost Finance have previously used Avalanche for stablecoin launches.
BDACS plans to extend KRW1 to other blockchains for interoperability and may collaborate with USD-pegged stablecoins like USDC and USDT.

Stablecoin Economy in South Korea

South Korea is focusing on stablecoin regulation, with new licensing regimes proposed.
A bill introduced by lawmaker Min Seok aims to strengthen South Korea's position in the digital economy.
Issuers must have over 500 million Korean won ($367,890) in owner's capital.
The regulatory environment is attracting Traditional Finance firms like KakaoBank to the stablecoin market.
The Financial Services Commission plans to submit a won stablecoin bill to parliament.