South Korean Custodian Bdacs Launches First Fiat-Backed Won Stablecoin On Avax

What Happened

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.

The stablecoin launch follows the successful completion of a full proof of concept (PoC) that validates its technical viability.

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’s Asian footprint comes a week after the foundation announced plans to establish two AVAX reserve companies in the US.

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.

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Market Context

“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.”

Why It Matters

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

“Currently in a pilot phase following a full PoC, KRW1 marks an important step toward regulated, bank-integrated digital money in Korea.”

Details

Avalanche Gets Strong Asian Narrative

“Avalanche provides the performance, security, and scale to bring it to life,” it added.

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.

BDACS Develops Comprehensive Framework for KRW1 Issuance

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.

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.

Early this month, Tether executives held stablecoin meetings with officials from the South Korean financial heavyweight Shinhan Bank.