19.09.2025 00:47
In a groundbreaking development poised to reshape South Korea's financial landscape, the nation has unveiled its first-ever won-pegged stablecoin, KRW1. This historic initiative, spearheaded by the cryptocurrency custody provider BDACS in collaboration with Woori Bank, leverages the robust Avalanche (AVAX) network, marking a significant milestone for digital currency integration in the country. The move follows a recent report by Tiger Research, which underscored Avalanche's burgeoning appeal and increasing institutional engagement across the Asian continent.
Dubbed KRW1, this fully collateralized, won-backed stablecoin represents a pioneering effort in South Korea's digital asset space. While currently in its pilot phase, BDACS has affirmed that KRW1 signifies a crucial stride towards the establishment of a regulated, bank-integrated digital currency framework within Korea. This strategic launch on the Avalanche network not only demonstrates confidence in the underlying blockchain technology but also sets a precedent for how traditional financial institutions can converge with decentralized solutions.
The decision to build KRW1 on Avalanche was primarily driven by the network's unparalleled reliability, security, and scalability, attributes deemed essential for public sector applications. Avalanche's infrastructure offers the requisite performance and robust security measures to facilitate KRW1's ambitious rollout, connecting vital entities like banks, institutions, and individual users. This foundational choice is critical as BDACS seeks to mold the future of Korea's digital economy through this innovative stablecoin.
BDACS harbors ambitious aspirations for KRW1, aiming to position it as a globally utilized stablecoin for a wide array of financial activities, including remittances, payments, investments, and deposits. Furthermore, the company intends to deploy KRW1 in critical public sector applications, such as payment systems for emergency relief. Looking ahead, BDACS plans to expand KRW1's reach across various blockchains to enhance interoperability and is actively exploring potential collaborations with major USD-pegged stablecoins like USDT or USDC, signalling a commitment to broader integration.
This collaborative venture between BDACS and Woori Bank, powered by Avalanche, is not merely the launch of a new digital asset; it heralds a new chapter in South Korea's digital economy. As KRW1 navigates its pilot phase and progresses towards wider adoption, it stands to redefine the interaction between traditional banking and the burgeoning world of digital finance, setting a precedent for innovation and regulatory foresight in the global cryptocurrency sphere.
