South Korean Custodian BDACS Launches First Fiat-Backed Won Stablecoin on AVAX

BDACS, a South Korean digital asset custodian, has officially launched the first Korean won–backed stablecoin on the Avalanche blockchain. Dubbed KRW1, the stablecoin is fully collateralized with Korean won deposits held at Woori Bank, AVAX reported on Thursday.

“Every KRW1 is backed 1:1 with won held in escrow at Woori Bank,” wrote Avalanche on X.

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

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 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.

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.

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