- BDACS launched KRW1 as South Korea’s first won-backed stablecoin on the Avalanche blockchain.
- The stablecoin will serve as a low-cost payment system for public-sector programs.
One of the largest South Korean digital asset custodians, BDACS, has unveiled KRW1, the first Korean won-based stablecoin in the Avalanche blockchain. The landmark launch represents a significant achievement in Korea’s digital finance evolution.
The stablecoin is entirely collateralised by the deposits of Korean won in the Woori Bank. Every KRW1 token will be backed by one won in the escrow, ensuring full support for all the issued tokens.
“Every KRW1 is backed 1:1 with won held in escrow at Woori Bank,” Avalanche confirmed through its official social media channels.
Avalanche is powering a new chapter in Korea’s digital economy. 🔺🇰🇷
BDACS, together with Woori Bank, has launched KRW1, a fully collateralized, won-backed stablecoin. Currently in a pilot phase following a full PoC, KRW1 marks an important step toward regulated, bank-integrated… pic.twitter.com/fSsH4si5zP
— Avalanche🔺 (@avax) September 18, 2025
Avalanche Strengthens Asian Market Presence
Due to the partnership, Avalanche is a major player in the growing digital asset market in Asia. The blockchain platform provides the performance and security level of financial products of institutional quality.
By selecting Avalanche as one of the principal partners in the world, BDACS focuses on the platform’s ability to handle large-scale projects in the digital economy. The cooperation will involve the Korean financial institutions employing blockchain technology to facilitate their conventional banking operations.
Justin Kim, the Head of Asia-Ava Labs, noted the strategic significance of the partnership. The Avalanche ecosystem is a highly practical-based system that fits the objectives of BDACS and Woori Bank in the Korean digital transformation.
The stablecoin launch takes place a week after the Avalanche Foundation declared its intention to have two AVAX reserve firms in the United States. This timing indicates the synchronised growth plan by Avalanche in various markets.
Technical Framework and Future Applications
BDACS built an extensive operational model for KRW1 management. The system entails issuance, verification of transactions and reserve management programs.
In December 2023, the firm registered the KRW1, which gave legal grounds to the commercial implementation of the stablecoin. The preparation of this sort is evidence that BDACS is long-term oriented on the development of Korean digital currency.
KRW1 integrates real-time API functionality for instant reserve verification. This aspect provides transparency and creates trust with the institutional users and regulators.
BDACS intends to use KRW1 as a cost-effective payment and settlement system for public sector programs. The solution would save a significant amount of transaction expenses over other traditional payment methods.
Harry Ryoo, BDACS CEO, gave the larger vision of the company beyond custody services. The company seeks to provide the framework infrastructure for the digital asset market in Korea to corporate, institutional, and government customers.
The stablecoin establishes itself as a technical standard in future Korean digital currency projects. Its banking integration and compliance with regulatory policies form a blueprint for how other similar projects can be done.
