BDACS issues KRW1, the first stablecoin Peg to the Korean won on the Avalanche blockchain, after completing a PoC with Woori Bank.
Blockchain technology company BDACS has completed a major milestone in digitizing the Korean won by officially launching KRW1, a stablecoin backed 1:1 by the won and issued on the Avalanche blockchain. This comes after the company successfully conducted a proof-of-concept (PoC) with Woori Bank, one of the largest banks in Korea, marking a breakthrough in integrating digital assets into the traditional financial system.
KRW1 is designed with a unique closed-loop architecture that seamlessly connects fiat deposits, Token Issuance , and on-chain verification. Each KRW1 Token is backed by actual won deposited at Woori Bank, while the bank API provides a real-time Proof of Reserves verification mechanism. This ensures high transparency and verifiability, two factors that are important for building trust in the stablecoin ecosystem.
The proof of concept was limited to technical validation and has not yet been publicly released, but the successful results have demonstrated the possibility of integrating blockchain technology with traditional banking infrastructure. Woori Bank not only acted as a pilot but also directly managed the collateral assets, creating a replicable model for regulated support of issuance, custody and settlement.
Towards practical applications in the public sector
BDACS has clearly identified specific use cases for KRW1, including remittances, payments, investments, deposits, and especially public disbursements such as emergency relief with low transaction costs. The application of stablecoins to public disbursements can bring significant efficiency, helping the government save costs and speed up the distribution of support to the people.
Justin Kim, Asia Regional Director of AVA Labs, emphasized that the successful testing of KRW1 demonstrates the need for a high-performance, reliable, and regulated blockchain to support regulatory-compliant stablecoins. The choice of Avalanche was reinforced by the Korea Internet & Security Agency (KISA)'s assessment of the blockchain's suitability for the public sector.
BDACS is actively seeking partners in the financial and technology sectors and is exploring collaboration with USD Peg stablecoins to support cross-border liquidation . The company also plans to expand to other blockchains to enhance interoperability, creating a multi-platform stablecoin ecosystem.
CEO Harry Ryoo affirmed the company's broader vision, saying that BDACS is not just a custody service provider, but that KRW1 is designed as an infrastructure for corporate, institutional, and public sector clients. The company expects KRW1 to be evaluated as a technical standard under the pending Basic Digital Asset Act in Korea.
The launch of KRW1 is particularly significant as it marks the first direct tie-up of bank money with onchain receipts in a highly regulated market like South Korea. If the audit trail, banking connectivity, and processing capacity can be sustained in real-world daily traffic, KRW1 has the potential to become a practical tool for the movement of won on digitally calculated and reconciled “rails,” ushering in a new era for the South Korean financial system.
