BDACS Shakes Up Crypto: Launches Won-Backed Stablecoin KRW1 on Avalanche Network

Avalanche just got a major boost from East Asia's financial ecosystem.

BDACS—Korea's digital asset powerhouse—unveiled KRW1, a South Korean won-pegged stablecoin built directly on Avalanche's lightning-fast blockchain. This isn't just another stablecoin launch; it's a strategic move to bridge traditional finance and decentralized networks with institutional-grade stability.

Why Avalanche? Speed, scalability, and snowman consensus. Transactions finalize in under two seconds—ideal for high-frequency won settlements without traditional banking delays. No more waiting three business days for cross-border transfers.

KRW1 is fully collateralized 1:1 with reserves held in licensed Korean banks. Regular audits? Check. Regulatory compliance? You bet. This isn’t some fly-by-night algorithmic experiment—it’s finance with training wheels, but on a blockchain that actually works.

For Korean traders and DeFi users, this means seamless access to dollar-free liquidity. Swap, lend, and borrow without touching volatile crypto—unless you want to. Avalanche’s growing ecosystem just got a serious real-world asset boost.

And let’s be real—after the last stablecoin collapse, seeing one actually backed by something other than hope and memes is… refreshing. Even if it does make traditional bankers squirm.

Welcome to the future of money—fast, borderless, and ironically, stable.

Avalanche’s integration with banks, institutions, and end-users has enabled BDACS to launch KRW1, designed for scalable public sector use, thereby strengthening Avalanche’s footprint in Asia.

“Avalanche provides the performance, security, and scale to bring it to life,” BDACS confirmed, highlighting its infrastructure’s suitability for real-world deployments.

Avalanche’s expansion into Asia follows its recent announcement to establish two AVAX reserve facilities in the US, underscoring its two-pronged expansion strategy.

How Does The KRW1 Fit Into The Korean Digital Asset Market?

Well, for starters, BDACS is positioning the KRW1 as a low-cost payment settlement solution for public-sector programs, as confirmed by Avalanche.

By significantly reducing transaction fees, KRW1 could emerge as a cornerstone for the South Korean digital asset market and become a technical yardstick for stablecoin infrastructure in South Korea.

Harry Ryoo, CEO of BDACS, iterated, “BDACS is not just a custody service provider. We are building the backbone of the digital asset market, serving corporate, institutional, and public-sector partners alike.”

Further, to support this objective, BDACS has developed a full-stack framework for the KRW1 stablecoin, covering issuance, management and transaction verification. Moreover, the stablecoin features real-time API integration with Woori Bank, enabling instant and transparent proof of reserves.

For now, however, BDACS has clarified that the KRW1 stablecoin is still in its proof-of-concept phase and has not entered public circulation.

“Currently in a pilot phase following a full PoC, KRW1 marks an important step toward regulated, bank-integrated digital money in Korea,” BDACS stated.

Legislative Push For A Won-Backed Stablecoin In South Korea

KRW1’s launch comes amid a broader wave of stablecoin activity in South Korea’s finance sector.

While regulators in the country debate several bills related to stablecoin regulation, major financial institutions have started filing trademark applications for won-backed stablecoin ticker symbols.

Kakao Bank, Kookmin Bank, and the Industrial Bank of Korea have all filed trademarks for won-backed stablecoins.

Stablecoins are such a big topic right now, this is the first public Korean Won stablecoin pilot with a Korean Bank pic.twitter.com/MOdfN7tzcI

— Coop(@coopernicus01) September 18, 2025

Meanwhile, Tether executives recently met with Shinhan Bank officials, signalling growing interest from global players in Korea’s evolving digital currency landscape.

In the backdrop, South Korea is pushing for a sovereign stablecoin framework, with President Lee Jae Myung backing the development of local currency-pegged digital assets to reinforce monetary control.

However, the Bank of Korea has cautioned that only licensed banking institutions will be allowed to issue stablecoins. This step by the central bank aims to curb systemic risks from unchecked digital currency proliferation.

Key Takeaways

• BDACS becomes the first custodian to launch a won-backed stablecoin, KRW1 in South Korea
• KRW1 features real-time API integration with Woori Bank, enabling instant and transparent proof of reserves.
• BDACS clarified that the KRW1 stablecoin is still in its proof-of-concept phase and has not entered public circulation