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The influence of stablecoins is expanding globally, and South Korea is now testing its own potential entry into the market. BDACS, a South Korea-based crypto firm, has announced the launch of KRW1, its first stablecoin pegged to the Korean won (KRW), developed in partnership with Woori Bank.
💱 South Korea’s BDACS launches KRW1, the first won-backed stablecoin on Avalanche
$KRW1 is fully collateralized 1:1 with Korean won held at Woori Bank. It follows a successful proof-of-concept and is now in pilot phase to bridge fiat and blockchain in Korea.#KRW1 #Avalanche pic.twitter.com/BuV8PhD6hr
— 99Bitcoins (@99BitcoinsHQ) September 18, 2025
The stablecoin, currently introduced as a proof-of-concept, is not yet publicly deployed but provides a comprehensive view of how a won-backed stablecoin could function in the country’s financial ecosystem.
Stablecoin Design and Backing
BDACS chose Avalanche blockchain as the foundation for KRW1 due to its stability and strong security infrastructure. Each KRW1 token is fully backed 1:1 by reserves held with Woori Bank, ensuring parity with the South Korean won.
Beyond issuing the stablecoin, BDACS has also built the full infrastructure required to support it, tools for issuance and management, a public reserve verification interface, and user-facing applications. This technical groundwork aims to position BDACS as the go-to partner for future government-approved stablecoin deployments.
South Korea’s Regulatory Landscape
South Korea has not yet finalized its regulatory framework for stablecoins. However, the government has signaled support for developing won-pegged stablecoins under strict licensing regimes. Analysts note that only a limited number of issuers are likely to receive approval, which has sparked competition among firms like BDACS to establish themselves early.
At present, BDACS is the only project offering a complete end-to-end infrastructure for won-backed stablecoins, making it a strong contender in the race for regulatory approval and potential partnerships with major tech companies.
Global Interoperability Plans
BDACS also confirmed that KRW1 will be designed for cross-chain interoperability, ensuring that its launch on Avalanche does not restrict future expansion. Plans are underway to enable interoperability with USD-backed stablecoins, improving liquidity and supporting global adoption of the KRW1 token.
If successful, KRW1 could become a stepping stone for South Korea’s broader digital finance strategy, potentially integrating into international markets alongside USD-pegged stablecoins that already dominate the $289 billion global stablecoin sector.
