BDACS, Woori Bank Launch South Korea’s First Won-Backed Stablecoin on Avalanche

Core Insights - BDACS has launched KRW1, South Korea's first fully regulated won-backed stablecoin, in partnership with Woori Bank, following a successful proof of concept [1] - Each KRW1 token is fully collateralized by South Korean won held in escrow at Woori Bank, with real-time banking API integration ensuring transparent proof of reserves [2] - KRW1 operates on the Avalanche blockchain, recognized for its high-performance capabilities and reliability in public-sector applications [3] Company Developments - BDACS envisions KRW1 for various applications including remittances, payments, investments, and deposits, with plans for public-sector deployment in emergency relief disbursements [4] - The company aims to expand KRW1 to additional blockchains and explore collaborations with global stablecoin networks, including potential partnerships with USD-backed issuers like Circle and Tether [4] Industry Context - South Korean internet giant Kakao is also developing a won-pegged token through its Kaia blockchain, indicating a competitive landscape for stablecoins in the region [5] - Japan's JPYC is expected to receive regulatory approval for its yen-backed stablecoin, marking a significant advancement in stablecoin initiatives in Asia [5] - Ripple and SBI Holdings are preparing to launch RLUSD in Japan by early 2026, reflecting ongoing developments in the stablecoin sector [6] Regulatory Landscape - South Korean lawmakers are divided on stablecoin legislation, with both ruling and opposition parties advocating for full reserve backing and increased oversight by the Bank of Korea [7]