BDACS Launches South Korea's First Won-Backed Stablecoin with Woori Bank Partnership

BDACS, a Seoul-based digital asset custody services provider, announced the official launch of KRW1, South Korea's first fully operational won-backed stablecoin, after completing a comprehensive proof of concept with Woori Bank. The milestone represents a significant step forward for South Korea's digital asset infrastructure, integrating fiat deposits, stablecoin issuance, and blockchain verification into a complete ecosystem.

The company trademarked the KRW1 brand in December 2023, positioning itself as a first mover in Korea's evolving digital asset market ahead of formal regulations. Each KRW1 token is fully collateralized with South Korean won held in escrow at Woori Bank, one of the country's major commercial banks, with real-time banking API integration ensuring transparent proof of reserves.

KRW1 operates on the Avalanche blockchain, chosen for its high-performance capabilities and security features recognized by Korea's Internet & Security Agency for public-sector use. Justin Kim, Head of Asia at Ava Labs, said the successful test pilot demonstrates the need for highly-performant blockchain infrastructure tailored for regulatory-compliant stablecoins. Kim noted that Avalanche's technology and growing ecosystem of real-world assets will support BDACS and Woori Bank in delivering a trusted solution for Korea's digital economy.

BDACS developed a comprehensive framework extending beyond token issuance, including management systems and a user-facing application supporting peer-to-peer transfers and transaction verification. The company's infrastructure encompasses the complete stablecoin lifecycle, from issuance through circulation, distinguishing it from projects focused solely on payments.

Harry Ryoo, CEO of BDACS, emphasized that the company is building the backbone of the digital asset market for corporate, institutional, and public-sector partners. Ryoo described KRW1 as a turning point for the company and predicted it would become a foundational asset for the digital economy.

The launch comes as South Korea prepares its Digital Asset Basic Act, with BDACS expecting KRW1 to be considered as a leading technical standard for stablecoins under the forthcoming legislation. The company maintained legal compliance by limiting the launch to proof-of-concept stage for technical validation only, with no public circulation of tokens.

BDACS aims to position KRW1 for universal use in remittances, payments, investments, and deposits. The company is preparing to deploy the stablecoin in public-sector applications, including low-cost payment systems for emergency relief disbursements. Future plans include expanding to additional blockchain networks beyond Avalanche and exploring partnerships with USD-backed stablecoin providers like Circle and Tether for global interoperability.