Recently, South Korean digital asset custodian BDACS announced the official launch of the won-pegged stablecoin KRW1. It is understood that KRW1 will be fully backed by Korean won deposits within Yuanta Bank, and KRW1 will be issued on Avalanche. Despite South Korean President Yoon Suk-yeol's clear support for stablecoins, the local regulatory framework has yet to be established. The issuance of KRW1 is limited to the PoC stage for technical verification to ensure that no illegal activities occur, and the token has not yet been publicly circulated.
Digital asset custodian BDACS partners with Yuanta Bank and AVAX to launch the first Korean won stablecoin KRW1
Issuer BDACS stated that as early as 2023, they actively laid out plans for a South Korean won stablecoin and registered the KRW1 trademark. This official collaboration with Woori Bank ensures that each issued KRW1 has corresponding assets held in that bank, which can be verified in real-time through Woori Bank's API.
In terms of technology, KRW1 will first be issued on the Avalanche blockchain. BDACS states that Avalanche is a globally recognized high-performance network, recognized by the Korea Internet & Security Agency (KISA) for its reliability and security in public sector applications.
KRW1 aims to become the issuance framework for the South Korean won stablecoin, widely used for remittances, payments, investments, and deposits.
KRW1 is positioned as a universal stablecoin for remittances, payments, investments, and deposits. The company is also preparing to deploy KRW1 in public sector applications, including low-cost payment and settlement systems for emergency relief spending, significantly reducing transaction costs. The company is actively establishing partnerships in the finance and technology sectors.
The goal is for KRW1 to be not just a stablecoin but also the issuance framework for stablecoins in South Korea's (Digital Assets Basic Law). However, as the regulatory framework for stablecoins has not yet been implemented, KRW1 is still in the technical verification stage and has not been publicly issued.
This article announces the official launch of the first South Korean won-pegged stablecoin KRW1! Issuer BDACS collaborates with Woori Bank and AVAX to create a stablecoin framework, first appearing in Chain News ABMedia.
