Avalanche Partners With Woori Bank to Pilot Korea’s KRW1 Stablecoin

• KRW1 stablecoin pilot with Woori Bank runs on Avalanche, backed 1:1 by Korean won.
• AVAX price jumps near 10% as trading surges, tied to stablecoin pilot announcement.

South Korea’s BDACS has announced the pilot launch of KRW1, a stablecoin fully backed by the Korean won, on the Avalanche network. The project, backed by Woori Bank, follows a completed proof of concept that confirmed its technical stability.

Each KRW1 token is backed 1:1 with won held at Woori Bank. The stablecoin uses real-time API integration with the bank, allowing instant proof of reserves. This integration sets a new benchmark for transparency as the country prepares its Digital Asset Basic Act.

The company said in its release, 

KRW1 Offers Low-Cost Public Settlements

Currently, KRW1 is in a pilot phase and has not been made available to the general public, ensuring compliance with existing local rules. BDACS described this project as groundwork for regulated, bank-integrated digital money within Korea’s emerging stablecoin framework.

KRW1 is developed for use cases, such as money transfers, investment, and deposits. Its use in the public sector is also part of the plan, for example in settlement systems for distributing emergency aid, which provide low-cost payment processing.

The company plans to introduce KRW1 on other blockchain platforms to enhance interoperability. It is also considering potential collaboration with dollar-pegged stablecoins such as USDT and USDC. The company said major technology firms may join later, adding, 

Real-World Adoption Drives Avalanche’s 2025 Momentum

Meanwhile, the Avalanche network is showing high performance in 2025. In August, decentralized exchange volume reached $12 billion. The network processed $630 million in one day, which passed Arbitrum and Sui. This activity shows an 8x increase in just two months.

Tokenized real-world assets on Avalanche now exceed $450 million. Grove Finance plans to bring $250 million in institutional credit, and SkyBridge is raising $300 million for tokenized investment funds. Uptop has joined an NBA loyalty program rollout. 

Wyoming has also launched FRNT, the first state-issued stablecoin, and Exit Festival has deployed Avalanche smart tickets for 500,000 visitors, showing the real-world use of blockchain technology beyond finance.

As Avalanche adoption increases, AVAX, the network’s native token, trades at $32.96, rising nearly 10% in the last 24 hours. Trading volume has jumped 85%, reaching $1.77 billion.