South Korean Custodian BDACS Shatters Barriers with First Fiat-Backed Won Stablecoin Launch on Avalanche

South Korea's financial landscape just got a seismic upgrade as regulated custodian BDACS drops the nation's first fiat-backed won stablecoin directly on Avalanche's blazing-fast network.

Gateway to DeFi Dominance

This isn't just another stablecoin—it's a regulated bridge between traditional finance and decentralized ecosystems. BDACS leverages Avalanche's sub-second finality to offer Korean investors institutional-grade digital asset exposure without the usual friction of cross-chain transfers.

Regulatory Muscle Meets Blockchain Speed

While other projects dance around compliance, BDACS built this within Korea's strict financial framework. The won-pegged asset delivers something crypto desperately needs: legitimacy without sacrificing speed. Traders get instant settlements while institutions enjoy regulatory comfort—a combination that’s been rarer than a rational central banker.

Because nothing says 'financial innovation' like recreating traditional banking on a blockchain—but hey, at least the settlement times are faster than a banker's lunch break.

The stablecoin launch follows the successful completion of a full proof of concept (PoC) that validates its technical viability.

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

Avalanche Gets Strong Asian Narrative

Avalanche connects with banks, users and institutions, enabling BDACS “to shape the future” of Korea’s digital economy with the stablecoin launch, the blockchain noted.

“Avalanche provides the performance, security, and scale to bring it to life,” it added.

Avalanche’s Asian footprint comes a week after the foundation announced plans to establish two AVAX reserve companies in the US.

Further, Avalanche is one of BDACS’s Core global partners, underscoring the firm’s commitment to scalable, institutional-grade blockchain infrastructure.

“The Avalanche technology and its growing ecosystem of real-world assets will support BDACS and Woori Bank to deliver a trusted, innovative solution for Korea’s digital economy,” Justin Kim, Head of Asia at Ava Labs, said in an official release.

BDACS completed a trademark registration for its proprietary won stablecoin KRW1 in December 2023.

BDACS Develops Comprehensive Framework for KRW1 Issuance

Per Avalanche post, BDACS is planning to utilise KRW1 as a “low-cost payment and settlement system” for public-sector programs.

This WOULD significantly lower the payment processing fees, making KRW1 a technical standard for stablecoins in Korea.

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

Further, the company has developed a comprehensive framework for KRW1, including its issuance, management and transaction verification, an official release read.

Besides, the stablecoin will have real-time API integration, which enables instant verification of reserves.

The stablecoin craze in South Korea is taking shape among traditional finance players. At least three local financial institutions, including Kakao Bank, Kookmin Bank and the Industrial Bank of Korea, have filed for Korean won stablecoin trademarks.

Early this month, Tether executives held stablecoin meetings with officials from the South Korean financial heavyweight Shinhan Bank.