KRW1 is South Korea’s first fully regulated won‑backed stablecoin, fully collateralized with South Korean won held in escrow at Woori Bank and issued on Avalanche; it provides real‑time proof‑of‑reserves via banking API and targets payments, remittances and regulated public‑sector uses.
-
Fully fiat‑collateralized: each KRW1 token is backed 1:1 by won held in escrow at Woori Bank.
-
Launched on Avalanche after a completed proof of concept validating deposits, issuance and blockchain verification.
-
Planned use cases include remittances, low‑cost public disbursements and expansion to other blockchains; regulatory momentum is rising across Asia.
KRW1 stablecoin: South Korea’s first regulated won‑backed stablecoin, fully collateralized and audited — learn how it works and what it means for Asian stablecoin markets.
What is KRW1 and why does it matter?
KRW1 stablecoin is a won‑pegged digital token issued by BDACS in partnership with Woori Bank, fully backed by Korean won held in escrow and recorded on the Avalanche blockchain. It matters because it combines regulatory compliance, real‑time proof‑of‑reserves and scalable infrastructure for payments and public‑sector payouts.
How does KRW1 work?
KRW1 maintains full collateralization via won deposits at Woori Bank with API‑level verification for proof‑of‑reserves. BDACS completed a proof of concept validating fiat deposits, token issuance, and blockchain reconciliation. The token launched on Avalanche, chosen for performance and prior recognition in public‑sector blockchain use cases.
BDACS announced KRW1 as South Korea’s first fully KRW‑backed stablecoin, developed with Woori Bank. BDACS trademarked the KRW1 brand in December 2023 and moved to regulatory compliance ahead of formal rules.
What are KRW1’s intended use cases?
BDACS positions KRW1 for remittances, payments, investments and deposit services. Public‑sector pilots are planned for low‑cost payment and settlement, including emergency relief disbursements. The team also intends to expand KRW1 to additional blockchains and explore interoperability with global stablecoin networks.
Frequently Asked Questions
Is KRW1 regulated under South Korean law?
KRW1 is marketed as the first fully regulated won‑backed stablecoin in South Korea, launched after infrastructure work completed before formal national rules. Ongoing legislation in Korea aims to require full reserve backing and stronger oversight by the Bank of Korea.
How will KRW1 affect remittances and payments?
KRW1 can lower cross‑border remittance costs and speed up domestic digital payments by providing a digitally native, bank‑collateralized unit of account that integrates with banking APIs and blockchain settlement rails.
Will KRW1 expand beyond Avalanche?
BDACS plans to expand KRW1 to additional blockchains and explore collaborations with global stablecoin networks and USD‑backed issuers. Future interoperability is a stated objective in the company’s release.
Key Takeaways
- Regulatory first: KRW1 is positioned as South Korea’s first fully regulated won‑backed stablecoin with escrowed reserves.
- Technical validation: A proof of concept validated deposits, issuance and blockchain verification on Avalanche.
- Real‑world uses: Targeted at remittances, payments and public‑sector disbursements with plans for cross‑chain expansion.
Conclusion
The launch of KRW1 stablecoin marks a notable step in Asia’s stablecoin evolution, combining bank custody, regulatory compliance and blockchain settlement. As Korea’s legislative framework develops and regional projects advance, KRW1 could set a model for regulated, fiat‑backed digital money — watch for pilot rollouts and interoperability updates.
Original press release: BDACS announced KRW1 in partnership with Woori Bank and published details including English and Korean statements. Social media announcement referenced BDACS (Twitter handle BDACSKorea) on 2025‑09‑18.
Context: Other regional initiatives include JPYC’s expected regulatory approval in Japan and corporate projects by Kakao (registered trademarks for won tokens). Ripple and SBI Holdings are preparing RLUSD in Japan. Bank of China Hong Kong unit reported plans to seek a stablecoin issuer license.
Author: COINOTAG • Published: 2025-09-18 • Updated: 2025-09-18
