South Korea’s digital asset landscape takes a major leap forward with the launch of KRW1, the country’s first won-backed stablecoin. BDACS, a leading South Korean digital asset custodian, developed this innovative payment solution on the Avalanche blockchain platform. The stablecoin maintains a steady one-to-one value ratio with the Korean won, marking a significant milestone in the nation’s journey toward digital currency adoption.
🇰🇷 NOW: South Korea's BDACS launches the first KRW-backed stablecoin KRW1 on Avalanche, fully collateralized with Korean won held at Woori Bank following successful proof of concept validation. pic.twitter.com/SckGehw7wT
— Cointelegraph (@Cointelegraph) September 18, 2025
Strategic Partnership Powers Stablecoin Innovation
BDACS partnered with Woori Bank, one of South Korea’s largest financial institutions, to bring KRW1 to life. Furthermore, Woori Bank secures the stablecoin through full collateralization with Korean won reserves. This collaboration ensures the stablecoin maintains rock-solid backing with traditional currency. The successful proof of concept validation demonstrates the project’s technical feasibility. Also, the partnership creates a robust foundation for the stablecoin’s widespread adoption in the Korean market.
Avalanche’s Role in Transforming Korean Payments
The selection of Avalanche’s blockchain infrastructure proves crucial for KRW1’s implementation. Additionally, Avalanche provides the high-speed processing and security essential for a national-scale digital payment system. The platform’s proven track record with institutional projects makes it an ideal choice for this venture. Moreover, Avalanche’s recent partnership with Inex, a Korean exchange, expands the potential for both online and offline stablecoin payments throughout South Korea.
Creating New Digital Economic Opportunities
South Korea’s cryptocurrency ecosystem shows remarkable potential with over 15 million active crypto accounts. The introduction of KRW1 opens new possibilities for digital payments and financial innovation. The stablecoin’s launch represents the first step toward a more integrated digital economy. Additionally, this development positions South Korea at the forefront of stablecoin adoption in Asia. The project’s success could inspire similar initiatives across the region, further accelerating the transition to digital currencies.
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