BDACS has officially launched KRW1, a stablecoin pegged to the South Korean won, issued on the Avalanche (AVAX) blockchain and backed by reserves held at Woori Bank. The launch follows a proof-of-concept that validated the technical design in collaboration with the bank.
Technical Details and Partnerships
KRW1 is trademarked by BDACS and minted on Avalanche. The company stated that its system integrates fiat deposits, token issuance, and on-chain verification into a closed loop. Each KRW1 token is fully collateralized by South Korean won held in escrow at Woori Bank, with a banking API enabling real-time proof-of-reserves checks. BDACS emphasized that the proof-of-concept was limited to technical validation and did not involve public circulation of KRW1. Woori Bank participated in the pilot and safeguards the collateral, potentially serving as a template for regulated support of issuance, custody, and settlement.
BDACS said it remains open to working with other banks as the initiative scales. The Korea Internet & Security Agency (KISA) previously assessed Avalanche's suitability for public-sector use, naming it a global partner. "The successful test pilot of KRW1 demonstrates the need for a highly-performant and reliable blockchain tailored for a regulatory-compliant stablecoin," said Justin Kim, head of Asia at Ava Labs. BDACS also plans to expand to other blockchains to improve interoperability.
Use Cases and Future Plans
Planned uses for KRW1 include cross-border remittances, payments, investments, deposits, and public-sector disbursements such as emergency relief funds with lower transaction fees. BDACS is seeking partnerships across finance and technology and exploring collaboration with USD-backed stablecoins to support cross-border liquidity. The company expects KRW1 to be evaluated as a technical standard under Korea's pending Digital Asset Basic Act.
BDACS CEO Harry Ryoo stated: "BDACS is not just a custody service provider. KRW1 is intended as infrastructure for corporate, institutional, and public-sector clients." He emphasized that bridging bank money with on-chain receipts could deliver practical value in Korea's tightly regulated but rapidly evolving market. If audits, banking links, and throughput survive daily real traffic, KRW1 may settle into a key role for moving won across rails that compute and reconcile.
This launch marks a significant step for the stablecoin landscape in South Korea. As the regulatory framework matures, the collaboration between BDACS and Woori Bank could serve as a blueprint for other financial institutions.