KRW1 Stablecoin Goes Live on Avalanche as BDACS Partners with Woori Bank

TLDR:

• BDACS introduced KRW1, the first Korean won-backed stablecoin, fully collateralized with fiat deposits at Woori Bank.
• Avalanche was selected as the launch blockchain for its speed, scalability, and security cited by Korea’s KISA agency.
• KRW1’s launch follows a completed proof of concept involving fiat integration, issuance systems, and user-facing applications.
• BDACS plans to expand KRW1 use for payments, remittances, and public-sector systems under Korea’s Digital Asset Basic Act.
  

South Korea now has its first won-backed stablecoin. BDACS, a digital asset custody service, rolled out KRW1 after completing a pilot phase. 

The token runs on the Avalanche blockchain, chosen for its speed and institutional-grade reliability. KRW1 is fully backed with won deposits held in escrow at Woori Bank. 

BDACS says it is preparing to make the token available for remittances, payments, and public programs.

Wu Blockchain reported that BDACS trademarked KRW1 in late 2023 and began building the infrastructure before formal regulations existed. 

The company created a full ecosystem linking fiat deposits, token issuance, and blockchain verification. Its goal was to be ready once Korea’s digital asset market opened up.

KRW1 Stablecoin Launches With Full Bank-Backed Collateral and Real-Time Reserve Proof

BDACS said each KRW1 token is matched one-to-one with won deposits at Woori Bank. Banking APIs provide real-time reserve checks, allowing users to verify collateral status. This transparency was a central feature of the proof of concept, which Woori Bank also joined.

The company also developed a mobile application that supports peer-to-peer transfers and transaction verification. This tool will serve as the main interface for users to send and receive KRW1 securely. BDACS stated that its model aims to reduce risk and build trust for both retail and institutional participants.

Avalanche’s network was chosen as the first chain for KRW1 issuance. BDACS highlighted Avalanche’s performance and low-cost transactions as key drivers of the decision. 

Ava Labs’ Asia head Justin Kim said the launch showed how blockchain could power compliant, real-world stablecoins in Korea.

BDACS Positions KRW1 for Payments, Remittances, and Public-Sector Use

Looking ahead, BDACS intends to expand KRW1 into several sectors. It is targeting cross-border remittances, online payments, and tokenized deposit solutions. The company is also working with partners to use KRW1 in public-sector programs, including low-cost settlements and relief payments.

BDACS CEO Harry Ryoo said KRW1 is a foundation for Korea’s digital economy strategy. The firm is exploring licensing its infrastructure to other companies and collaborating with global networks. This positioning could make KRW1 a standard once Korea’s Digital Asset Basic Act comes into effect.

The launch reflects a growing focus on locally issued stablecoins. As Korea moves toward regulated digital finance, KRW1 may play a key role in bridging fiat and blockchain ecosystems.

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