• A fully developed stablecoin in partnership with Woori Bank — backed 100 percent by KRW and built on the Avalanche blockchain for enhanced stability

BDACS has officially launched KRW1, a South Korean stablecoin backed by the South Korean won. The company has also completed a full proof of concept (PoC) validating the coin’s technical viability. The project marks a significant milestone, demonstrating the successful integration of fiat deposits, stablecoin issuance, and blockchain verification.

KRW1 is a proprietary stablecoin brand trademarked by BDACS in December 2023. From the start, BDACS saw the central role of stablecoins in the digital asset ecosystem and invested in building the necessary infrastructure, even before clear regulations existed. By pursuing a “Go-to-Market” strategy, the company has steadily laid the groundwork for early market leadership.

The KRW1 launch is not just about minting a coin. BDACS has developed a complete ecosystem, including an issuance and management system and a user-facing app that supports peer-to-peer transfers and transaction verification. KRW1 is 100 percent collateralized with Korean won, held in escrow at Woori Bank, a strategic partner of BDACS. Real-time banking API integration ensures transparent, verifiable proof of funds, strengthening trust and accountability. Woori Bank also participated directly in the PoC, underscoring the vital role banks can play in stablecoin ecosystems.

On the technical side, KRW1 was first issued on the Avalanche blockchain, a globally recognized, high-performance network cited by the Korea Internet & Security Agency (KISA) for its reliability and security in public-sector deployment. Avalanche is among BDACS’s core global partners, reflecting the firm’s commitment to robust, scalable blockchain infrastructure.

BDACS plans to evolve KRW1 into a universal-use stablecoin for remittances, payments, investments, and deposits — not limited to any one company or ecosystem. Looking ahead, BDACS plans to utilize KRW1 as a low-cost payment and settlement system for public-sector programs, such as emergency relief disbursements,  by significantly lowering payment processing fees. The company is actively forming partnerships across the financial and technology sectors, and expects KRW1 to be considered as the leading technical standard for stablecoins under Korea’s forthcoming Digital Asset Basic Act. BDACS remains open to diverse business models — such as licensing its technology and pursuing co-development initiatives — and is exploring potential collaborations with global stablecoin networks.

“BDACS is not just a custody service provider,” said Harry Ryoo, CEO of BDACS. “We’re building the backbone of the digital asset market, serving not only corporate and institutional investors, but also the public sector. KRW1 marks a turning point for our company, and we believe it will become a key asset for the digital economy.”

Justin Kim, Head of Asia at Ava Labs, stated, “The successful issuance demonstration of KRW1 is a case that shows a high-performance and stable blockchain optimized for regulatory-compliant stablecoins is essential. Avalanche’s technology and its continuously growing real-world asset ecosystem will contribute to BDACS and its alliance institutions in providing trustworthy and innovative solutions for Korea’s digital economy.”

More information and a detailed white paper on KRW1 are available at the BDACS KRW1 stablecoin website.

Q&A

1. Is there any legal risk in issuing a stablecoin before regulations are fully established?
Our leadership team includes legal professionals well-versed in regulatory frameworks. All legal aspects were thoroughly reviewed in advance. This issuance was strictly limited to the proof of concept (PoC) stage for technical validation — not for public circulation — ensuring there are no legal violations.

2. How is KRW1 different from other companies promoting stablecoin-related technologies?
KRW1 is the only KRW-based stablecoin that fully integrates all necessary infrastructure for issuance and circulation, including the blockchain network, custody solution, and banking backend. Unlike some companies that only showcase payment-related technologies, KRW1 has been technically validated across the entire stablecoin lifecycle. It brings all these parts together in one ecosystem.

3. Were there any challenges in developing the technology?
Every stage was challenging. However, the bigger concern was not technical — it was the regulatory uncertainty around whether stablecoins could realistically be adopted. We hope a formal regulatory framework will be established as soon as possible.

4. Is Avalanche the only blockchain network KRW1 will operate on?
The success of a stablecoin depends on scalability and real-world use cases. We plan to work with other blockchain networks to ensure broader compatibility and flexibility.

5. What is Woori Bank’s role? Are there plans to work with other banks?
Woori Bank is not only a key strategic partner for BDACS, but also plays a central role in safeguarding KRW1’s collateral and supporting the core infrastructure. While Woori is our initial banking partner, we are open to collaborating with other banks — both in terms of adopting KRW1 and supporting the stablecoin infrastructure more broadly.

6. Are there plans to collaborate with USD-based stablecoins like Circle or Tether?
Yes. While it is too early to share specifics, we believe that there are many areas where interoperability with USD-based stablecoins will be essential, and we are actively exploring those possibilities.

7. How does KRW1 compare to stablecoin initiatives from big tech companies like Naver or Kakao?
We acknowledge that big tech entering the stablecoin market is a major challenge for us. But since none of their projects have launched yet, it is difficult to make direct comparisons. What sets KRW1 apart is our partnership with global blockchain leaders and the involvement of Woori Bank, which provides a strong, differentiated infrastructure. In our view, big tech alone cannot fulfill all the infrastructure needs for issuing and distributing stablecoins. That’s where KRW1 already holds a clear advantage. Rather than viewing big tech as competitors, we see them as potential partners in growing the stablecoin ecosystem.