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South Korea launches KRW1, its first won-backed stablecoin on Avalanche, with Woori Bank reserves and regulatory compliance.
Author: Tanishq Bodh
Published On: Thu, 18 Sep 2025 20:44:02 GMT
September 18th, 2025 – South Korea has taken a major step toward mainstream digital finance with the launch of KRW1, the nation’s first stablecoin pegged to the Korean won. Issued by digital asset custodian BDACS on September 19, 2025, and backed 1:1 with reserves at Woori Bank, KRW1 debuts on the Avalanche blockchain to deliver fast, low-cost, and compliant payments. The pilot rollout comes as lawmakers prepare sweeping regulations under the forthcoming Digital Asset Basic Act.
The launch has sparked optimism across both traditional finance and blockchain communities. Avalanche’s native token, AVAX, rose more than 5% in 24 hours, buoyed by expectations of greater adoption in Asia. Enthusiasts on X called KRW1 a “milestone for digital money,” with influencers amplifying the announcement. Analysts suggest KRW1’s bank-backed model could set a standard in Asia, where competitors like Kakao’s Kaia token and Japan’s JPYC are vying for approval. By securing regulatory-friendly infrastructure and partnering with a top-tier bank, Qubic positions itself ahead of regional rivals.
Despite the bullish sentiment, challenges remain. South Korea’s upcoming Digital Asset Basic Act will require all stablecoins to be fully backed and overseen by the Bank of Korea, potentially narrowing issuance rights to licensed banks. While BDACS has a first-mover advantage, regulatory scrutiny may intensify once the law takes effect. Community critics also flagged risks tied to tokenomics, including whether BDACS can scale reserves as adoption grows. Global competition from giants like Tether and Circle could pressure KRW1 to demonstrate clear utility beyond compliance.
KRW1 runs on Avalanche, leveraging its sub-second transaction speed and low fees. The Useful Proof-of-Work-inspired blockchain architecture has already been recognized by Korea’s Internet & Security Agency as fit for public-sector applications. Each token is verifiably backed, with real-time API integrations allowing users to confirm reserves. Beyond crypto trading, BDACS envisions cross-border remittances, e-commerce, P2P payments, and even public-sector disbursements such as emergency aid. Future roadmaps hint at expansions to other chains and potential interoperability with USD stablecoins.
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South Korea's first won-pegged stablecoin KRW1 launches on Avalanche https://t.co/IgGkvfCXPv
Avalanche is powering a new chapter in Korea’s digital economy. 🔺🇰🇷 BDACS, together with Woori Bank, has launched KRW1, a fully collateralized, won-backed stablecoin. Currently in a pilot phase following a full PoC, KRW1 marks an important step toward regulated, bank-integrated https://t.co/fSsH4si5zP
🇰🇷 NOW: South Korea's BDACS launches the first KRW-backed stablecoin KRW1 on Avalanche, fully collateralized with Korean won held at Woori Bank following successful proof of concept validation. https://t.co/SckGehw7wT
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