Avalanche powers South Korea’s first Won-backed stablecoin – Details

Key Takeaways

How does BDACS plan to use KRW1?

KRW1 will be used as a low-cost payment and settlement tool, including for public-sector programs like emergency relief.

Why is Avalanche important here?

Avalanche provides the performance, scalability, and security to connect banks, institutions, and users for KRW1’s adoption.

After the U.S. set the tone with the GENIUS Act, the ripple effect on global stablecoin adoption is becoming clearer.

South Korea’s stablecoin push

South Korea has now entered the spotlight as BDACS, a leading digital asset custodian, rolled out KRW1, the country’s first won-backed stablecoin, on the Avalanche [AVAX] blockchain.

Backed by deposits held at Woori Bank, KRW1 marks a major step in linking traditional finance with blockchain infrastructure.

Providing further insights, Avalanche’s official account took to X (formerly Twitter) and noted, 

“Every KRW1 is backed 1:1 with won held in escrow at Woori Bank.With real-time API integration, reserves are verifiable instantly, setting a new benchmark for transparency and trust as Korea prepares its Digital Asset Basic Act.”

KRW1 isn’t just being positioned as another market instrument.

Rather, BDACS envisions the stablecoin as a low-cost settlement and payments tool, particularly for public-sector initiatives such as emergency relief programs.

Thus, by reducing transaction costs, the company hopes to demonstrate how stablecoins can function as a practical alternative to existing payment rails in Korea.

Its impact

With local regulations for digital assets on the horizon, industry watchers believe KRW1 could set a precedent as a technical standard for stablecoins in South Korea.

The reason for choosing Avalanche is that it provides the performance, security, and scalability needed to connect banks, institutions, and retail users, strengthening its case as a foundation for Korea’s digital economy.

As expected, this also helped Avalanche’s native token, AVAX, to gain momentum, trading at $32.96 after a 9.38% jump in the last 24 hours, according to CoinMarketCap.

Other developments

At the same time, Seoul Finance also reported that KOSCOM, the IT arm of Korea Exchange, filed trademarks for five stablecoin-related brands.

This included KSDC, KRW24, KRW365, KOSWON, and KORWON, while restructuring its digital assets division to meet rising market demand.

Adding to the momentum, Bitwise also filed an S-1 with the U.S. Securities and Exchange Commission to launch an exchange-traded fund tied to Avalanche.

Therefore, as stablecoins gain traction from the U.S. to Asia, the race now focuses on scale rather than adoption.

Major issuers like Tether, Circle, and JPYC are pursuing ambitious agendas, and the next phase of digital finance will likely reward those who capture trust, liquidity, and market share fastest.