BDACS Launches Won-Backed Stablecoin KRW1 on Avalanche, Aiming to Reshape South Korea’s Digital Market

TLDR:

• Market: KRW1 with Woori Bank support is at its proof-of-concept stage with non-public circulation to date, and makes use of Avalanche infrastructure for potential high-volume adoption.
• Narrative: KRW1 was introduced on September 18, 2025, as South Korea’s inaugural stablecoin secured by a won, for affordable public sector settlements and driven by BDACS’s full-stack solution and Woori Bank’s real-time link.

BDACS (Busan Digital Asset Custody Services) made history when it introduced KRW1, the first-ever stablecoin backed by Korean Won, on the Avalanche blockchain on September 18, 2025. Supported 1:1 with escrowed deposits at Woori Bank, KRW1 emerges from a successful proof-of-concept phase and validates its technical soundness. As a reason for entering into the partnership itself, Avalanche referred to its reliability and security and stated on X, “Every KRW1 is backed 1:1 with won held in escrow at Woori Bank.

With various USD-pegged stablecoins like USDH being launched this year, the $KRW1 story portrays it as an inexpensive payment vehicle for public programs through Avalanche’s scalable network to fortify its Asian presence. BDACS CEO Harry Ryoo stated, “We are creating the backbone of the digital asset marketplace, catering to corporate, institutional, and public-sector clients equally.” The stablecoin has a full-stack infrastructure for issuance, management, and verification with a real-time API connection to Woori Bank for clear reserve transparency.

In its pilot mode at present, KRW1 is set to create a technical standard for South Korea’s digital currency marketplace. The launch is timely with South Korea’s drive towards a sovereign stablecoin system promoted by President Lee Jae Myung, although only licensed banks can issue to ensure risk management by the Bank of Korea. As competitors like Kakao Bank and Kookmin Bank register trademarks, and Tether courts Shinhan Bank, KRW1 enters with some competition. Investors can follow its conversion from Proof of Concept to public circulation and any regulatory updates to observe its prospects to become Korea’s digital finance anchor.

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