Seoul-based digital asset company BDACS announced the launch of KRW1 on September 17, a stablecoin fully backed by the South Korean won. According to a press release shared with crypto.news, the rollout follows a successful proof-of-concept carried out in collaboration with Woori Bank, one of South Korea’s leading financial institutions.
Each KRW1 token is 1:1 collateralized with won held in escrow at Woori Bank, with real-time API integration providing verifiable proof of reserves. The stablecoin is initially issued on the Avalanche blockchain, chosen by BDACS for its security and performance, with plans to expand to additional networks in the future.
BDACS has also developed a framework to support token management and user applications, including peer-to-peer transfers and transaction verification. The company envisions KRW1 being used for remittances, payments, investments, and eventually public-sector programs, such as emergency relief disbursements.
BDACS CEO Harry Ryoo said KRW1 is designed to serve as a core infrastructure for Korea’s digital asset ecosystem, with plans to support corporate, institutional, and public sector adoption.
“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 launch of KRW1 comes amid growing interest in stablecoins in South Korea, building on earlier pilot programs in the country. It follows the KRWIN pilot by fanC and Initech—the first test of a won-pegged stablecoin—launched in August as part of broader efforts to develop a domestic stablecoin market.
Local surveys indicate strong demand among South Korean citizens, who frequently use dollar-backed tokens like USDT (Tether) and USDC (USD Coin) for trading and other financial activities. Meanwhile, major banks are exploring their own stablecoin initiatives. A consortium of eight financial institutions is reportedly developing a won-based digital asset, warning that without domestic options, dollar-backed coins could dominate the local market.
Regulators Advance Stablecoin Framework
KRW1’s debut coincides with South Korea’s Financial Services Commission (FSC) preparing a regulatory framework for stablecoins. As previously reported by crypto.news, the FSC is drafting legislation detailing requirements for issuance, collateral management, and internal controls. Expected in October, the bill will form the second phase of the Virtual Asset User Protection Act, initially introduced in late 2023. Lawmakers have been briefed on the draft rules, which aim to provide the country’s first unified regulatory approach for stablecoin issuance, clarifying how tokens like KRW1 can operate within South Korea’s financial system.
South Korea’s efforts mirror initiatives in Japan and Hong Kong, where regulators are also creating supportive policies for digital assets. The push has been further influenced by recent U.S. legislation designed to bolster the sector, heightening global competition.
While dollar-pegged stablecoins continue to dominate the global market, launches like KRW1 and the FSC’s forthcoming framework suggest that South Korea is taking concrete steps to establish a domestic foothold in the stablecoin space.
