BDACS Launches Korea’s First Won-Backed Stablecoin KRW1 on Avalanche Blockchain

BDACS launches KRW1, the first South Korean won-backed stablecoin, fully collateralized with deposits held in escrow accounts at Woori Bank.

The KRW1 stablecoin operates on the Avalanche blockchain, integrating issuance, management, and real-time proof of reserves for transparent operations.

BDACS positions KRW1 for payments, remittances, investments, and public-sector applications, aligning with Korea’s upcoming Digital Asset Basic Act regulations.

Avalanche is now driving a new chapter in South Korea’s digital economy as BDACS, in partnership with Woori Bank, launches KRW1, a fully collateralized won-backed stablecoin. The pilot follows a completed proof of concept, signaling progress toward bank-integrated digital money.

KRW1 and Its Banking Foundation

KRW1 was officially introduced by BDACS after years of groundwork that began in December 2023 when the stablecoin brand was trademarked. Anticipating demand for regulated stablecoins, the company built the infrastructure before clear legislation arrived.

Each KRW1 token is backed by South Korean won deposits securely held in escrow at Woori Bank. Through real-time API integration, users and institutions can verify proof of reserves, creating a transparent and accountable financial system.

BDACS has gone beyond issuance by developing an ecosystem that includes issuance systems, management tools, and a user-facing application. This app supports peer-to-peer transfers and transaction verification, making KRW1 accessible for both corporate and retail use.

Avalanche as the Technical Backbone

Avalanche has been selected as the launch blockchain for KRW1 due to its performance, scalability, and security. Recognized by the Korea Internet & Security Agency, Avalanche is regarded as suitable for public-sector and institutional applications.

The proof of concept also involved Woori Bank directly, demonstrating how traditional banks can integrate into stablecoin ecosystems. By providing custody and escrow services, banks reinforce the stability of fiat-backed digital assets.

Commenting on the collaboration, Justin Kim, Head of Asia at Ava Labs, stated, “The successful test pilot of KRW1 demonstrates the need for a highly-performant and reliable blockchain tailored for a regulatory-compliant stablecoin.” He emphasized that Avalanche’s ecosystem of real-world assets will support BDACS and Woori Bank in building trusted financial products.

Expanding the Role of KRW1 in the Digital Economy

BDACS envisions KRW1 as more than a transactional token. The company plans to position it for payments, remittances, investments, and deposits, with the potential to expand into public-sector services.

One key use case under development is low-cost settlement for emergency relief disbursements, where KRW1 could cut transaction fees and ensure faster delivery of funds. This signals the potential of stablecoins to function beyond the private sector.

Looking ahead, BDACS expects KRW1 to align with Korea’s forthcoming Digital Asset Basic Act, aiming to set a standard for regulated stablecoins. CEO Harry Ryoo affirmed, “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.”

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