BDACS Launches KRW1 Stablecoin Following Successful Proof of Concept with Woori Bank

BDACS today announced the official launch of KRW1, a South Korean won-backed stablecoin, alongside the successful completion of a full proof of concept (PoC) validating its technical viability. This milestone marks the integration of fiat deposits, stablecoin issuance, and blockchain verification into a fully operational ecosystem.

KRW1 is a proprietary stablecoin brand trademarked by BDACS in December 2023. Anticipating the central role of stablecoins in the , BDACS began building the necessary infrastructure well before formal regulations were in place. Through its ahead “Go-to-Market” strategy, the company has positioned itself as a first mover in Korea’s evolving digital asset market.

The launch extends far beyond token issuance. BDACS has developed a comprehensive framework, including issuance and management systems as well as a user-facing app supporting peer-to-peer transfers and transaction verification. Each KRW1 token is fully collateralized with South Korean won held in escrow at Woori Bank, BDACS’s strategic partner. Real-time banking API integration ensures transparent, verifiable proof of reserves, reinforcing trust and accountability. Woori Bank also participated directly in the PoC, highlighting the essential role banks can play in stablecoin ecosystems.

On the technical front, KRW1 was initially 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 use. Avalanche is one of BDACS’s core global partners, underscoring the company’s commitment to scalable, institutional-grade blockchain infrastructure.

“The successful test pilot of KRW1 demonstrates the need for a highly-performant and reliable blockchain tailored for a regulatory-compliant stablecoin,” said Justin Kim, Head of Asia at Ava Labs. “The Avalanche technology and its growing ecosystem of real-world assets will support BDACS and Woori Bank to deliver a trusted, innovative answer for Korea’s digital economy.” 

Looking ahead, BDACS aims to position KRW1 as a universal-use 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 disbursements, significantly reducing transaction 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 are building the backbone of the digital asset market, serving corporate, institutional, and public-sector partners alike. KRW1 marks a turning point for our company, and we believe it will become a foundational asset for the digital economy.”

For more information and a detailed white paper on KRW1, please visit the .

Supported by a global community of developers and Block confirmers, Avalanche offers a quick, low-cost environment for building decentralized applications (dApps). With its combination of speed, flexibility, and scalability, Avalanche is the platform of choice for innovators pushing the boundaries of blockchain technology.

Q&A

1. Is there legal risk in issuing a stablecoin before Korean regulations are finalized?

BDACS’s leadership includes legal professionals experienced in . The KRW1 launch was limited to a PoC stage for technical validation only, maintaining no legal violations and no public circulation of the token.

1. How is KRW1 diverse from other stablecoin projects?

KRW1 is the only KRW-based stablecoin to integrate all key infrastructure for issuance and circulation — including the blockchain network, custody framework, and banking backend. Unlike projects focused solely on payments, KRW1 has been technically validated across the full stablecoin lifecycle.

1. Were there challenges in development?

While technical hurdles were overcome, the greater challenge was regulatory uncertainty. BDACS looks forward to the establishment of a formal framework to accelerate stablecoin adoption.

1. Is Avalanche the only blockchain KRW1 will operate on?

Avalanche is the first network chosen due to its scalability and security. However, BDACS plans to expand to other blockchains to ensure broader interoperability.

1. What role does Woori Bank play? Will you work with other banks?

Woori Bank secureguards KRW1 collateral and supports core infrastructure as a strategic partner. While Woori is the first partner, BDACS is open to collaboration with additional banks to broaden adoption.

1. Are there plans to collaborate with USD-based stablecoins like Circle or Tether?

Yes. BDACS is exploring interoperability with USD-backed stablecoins, which will be critical to building global liquidity.

1. How does KRW1 compare to stablecoin initiatives from large tech firms?

While large tech companies may eventually enter the market, KRW1 is already operational with strong institutional backing from Woori Bank and global blockchain partners. This combination provides infrastructure depth that large tech alone cannot match. BDACS views these firms as potential collaborators rather than competitors.