South Korea launches stablecoin KRW1 on Avalanche
BDACS - a crypto custody service provider in Korea - has just introduced KRW1 , the first stablecoin Peg to the won, backed 1:1 by Woori Bank and deployed on Avalanche .
BDACS also builds a management system, P2P applications, and has the ambition to turn KRW1 into a global stablecoin for payments, remittances, investments, and public applications such as emergency relief payments.
Although still in the proof-of-concept (PoC) stage to comply with the law, KRW1 is taking advantage of the policy wave when President Lee Jae Myung supports the domestic stablecoin market, and many large financial institutions are rushing to issue their own currencies. However, the Central Bank wants only licensed banks to have the right to issue, to avoid financial risks.
Avalanche is powering a new chapter in Korea's digital economy. 🔺🇰🇷
— Avalanche🔺 (@ AVAX) September 18, 2025
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
Why is this news important?
KRW1 is the first stablecoin Peg 1:1 to the Korean won, backed by actual deposits at Woori Bank – one of the largest banks in Korea.
Deployment on Avalanche , a blockchain platform known for its speed and security, opens up the possibility of KRW1 being applied to payments, remittances, investments, and public applications.
This is XEM a strategic step for South Korea to assert its digital currency sovereignty in the context of a global race to issue stablecoins Peg to local currencies.
Background and related events
KRW1 is currently in the testing phase (Proof of Concept – PoC), not yet publicly circulated, to ensure compliance with domestic laws.
New South Korean President Lee Jae-myung publicly supported a domestic stablecoin market in June 2025 to strengthen digital financial sovereignty. Meanwhile, the Bank of Korea requires only licensed banks to issue stablecoins to reduce systemic risk.
Not only South Korea, many other countries are also pushing to issue stablecoins: Japan is preparing to approve the JPYC stablecoin Peg to the yen -Hong Kong and the UAE (Dirham) are also rushing to apply for a license to issue local currency stablecoins - while China is considering issuing a stablecoin pegged to the Renminbi (CNY)
Expert opinion
Justin Kim , Asia Director of AVA Labs (the developer of Avalanche), said that the successful test of KRW1 shows “the urgent need for a high-performance, reliable blockchain that meets the legal requirements of stablecoins.”
Analysts say KRW1 could become a public payment infrastructure, such as an emergency relief disbursement system, thanks to its transparent transaction capabilities and low costs.
BDACS also said it XEM large domestic tech conglomerates as potential partners rather than competitors, as KRW1 already has the advantage of backing from Woori Bank and global blockchain partners.
Conclude
KRW1 opens a new chapter for the stablecoin market in Korea, laying the foundation for a local currency Peg stablecoin model.
BDACS plans to expand KRW1 to many other blockchains and even connect with USD stablecoins (like USDT , USDC ) to increase international interoperability.
This is a move in line with the global trend, as many countries seek to put their domestic currencies on the blockchain, serving digital payments, remittances and public finance.
Coin68 synthesis
