New Stablecoin Pegged to South Korean Won Launches on Avalanche Blockchain

Jakarta, Pintu News – Stablecoin development in South Korea has reached a new milestone with the launch of KRW1, a stablecoin tied to the Korean won exchange rate.

The stablecoin was issued by BDACS, a Seoul-based digital asset company operating on the Avalanche (AVAX) blockchain. This launch marks an important step in the strengthening of digital financial infrastructure in South Korea.

KRW1 Launch: The First Step Toward Financial Innovation

BDACS has announced the launch of KRW1 on September 17, which is the first stablecoin tied to the Korean won. Each KRW1 token is secured by won reserves held at Woori Bank, one of the country’s largest financial institutions.

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Real-time API integration with banks allows for trustworthy verification of reserves, providing greater transparency to users. KRW1 is expected to be used not only for trade transactions but also for remittances, payments, and investments.

BDACS also plans to use KRW1 in public sector programs such as the distribution of emergency aid, showing the broad potential of this stablecoin in various financial applications.

Technology Excellence and Strategic Cooperation

The Avalanche blockchain was chosen by BDACS for its security and high performance. This decision was supported by the positive experiences of other entities that have used Avalanche for their stablecoin launches, such as Circle and Defrost Finance.

Avalanche is famous for its decentralized and open Proof-of-Stake (PoS) system, which supports efficient payments and financial services. The cooperation with Woori Bank not only enhances the legitimacy of KRW1 but also sets a precedent for future collaboration between traditional financial institutions and blockchain technology companies.

This represents a model that other banks in Asia can follow and helps in the integration of blockchain-based financial tools with the traditional financial system.

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Regulation and Market Impact

The launch of KRW1 coincides with the development of a regulatory framework by the South Korean Financial Services Commission (FSC), which is drafting a bill for stablecoins. The draft is expected to be part of the Virtual Asset User Protection Act introduced by the end of 2023.

This legal framework will provide clarity and direction for the operation of stablecoins like KRW1 in the South Korean financial system. This initiative is also a response to the dominance of stablecoins tied to the US dollar, such as Tether (USDT) and USD Coin (USDC), in the South Korean market.

With local alternatives like KRW1, it is expected to reduce dependence on foreign stablecoins and strengthen the country’s digital financial sovereignty.

Overall, KRW1 is not only a technological achievement but also a strategic step in strengthening South Korea’s digital finance ecosystem.

With strong regulatory support and cooperation between the traditional financial sector and new technologies, KRW1 has the potential to transform the digital finance landscape in Asia and set an example for similar initiatives around the world.

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Reference:

• FinanceFeeds. BDACS Launches South Korea’s First Won-Backed Stablecoin. Accessed on September 19, 2025
• CoinSpeaker. Avalanche Hosts First South Korean Won-Based Stablecoin. Accessed on September 19, 2025
• Crypto News. Won-Pegged Stablecoin KRW1 Launches in South Korea on Avalanche. Accessed on September 19, 2025