Woori Bank & BDACS Make History: South Korea’s First KRW-Backed Stablecoin Goes Live on Avalanche
South Korea's financial landscape just got a crypto upgrade—and traditional banks are finally playing ball.
Woori Bank teams with BDACS to launch nation's first won-pegged stablecoin
The Avalanche-powered digital won promises faster settlements than legacy systems—ironic, given most Korean banks still process transfers at 1980s speeds. Institutional adoption meets DeFi infrastructure as Korea's $1.6 trillion economy dips its toes into blockchain rails. Will this move finally shake the FSA out of its regulatory paralysis? Probably not—but it's a start.
Stablecoins in Asia
South Korean internet giant Kakao is also developing a won-pegged token through its KAIA blockchain, having registered trademarks including "KRWGlobal" and "KRWKaia" in August, Decrypt reported earlier.
The launch comes as Korea's neighbors advance their own stablecoin initiatives, with Japan's JPYC expecting to receive regulatory approval from the Financial Services Agency for its yen-backed stablecoin later this year, making it the first officially recognized yen stablecoin.
Ripple and SBI Holdings are also preparing to launch RLUSD in Japan by early 2026 under the country's Payment Services Act amendments.
Bank of China's Hong Kong unit saw shares jump 6.7% earlier this month on reports that it plans to apply for a stablecoin issuer license.
Korean lawmakers split on stablecoin bills
South Korea's ruling and opposition parties have recently filed competing stablecoin bills, though both demand full reserve backing and stronger oversight by the Bank of Korea.
The Democratic Party's proposal explicitly bans interest payments and requires $3.6 million minimum capital, while the People Power Party's legislation omits interest restrictions, focusing on licensing and disclosure requirements.
Rich O., APAC regional manager at OneKey, previously told Decrypt that Korea’s stablecoin rules need a “balanced approach,” with monetary sovereignty and consumer protections weighed against the risk that “excessive restrictions” could weaken competitiveness.
