BDACS has launched KRW1, a South Korean won-backed stablecoin, after completing a full proof of concept. The company said the token is backed 1:1 by won held in escrow at Woori Bank.
BDACS issued KRW1 on the Avalanche blockchain and plans to use real-time banking APIs to show proof of reserves.
The move aims to support payments, remittances, and other on-chain uses while meeting regulatory and technical checks.
An early push into Korea’s market
BDACS trademarked the KRW1 brand in December 2023, and the firm began building its systems well before Korea set formal rules for digital assets. BDACS called that a Go-to-Market strategy to reach clients fast as regulations take shape.
The company said it completed a PoC that tested fiat deposits, token issuance and blockchain verification. Woori Bank took part in the pilot, the company added.
How KRW1 is backed and verified
Each KRW1 token is fully collateralised by Korean won in escrow, and BDACS connected its systems to Woori Bank through real-time APIs.
That link gives on-chain proof of reserves, the company said. Users and partners should be able to confirm that every token has matching fiat held at the bank.
Also Read: South Korea’s FSC To Unveil Regulatory Framework For Won-Denominated Stablecoins This October
Technical choices and partners
BDACS chose the Avalanche blockchain for the initial issuance. The company said Avalanche is a high-performance network and is cited by the Korea Internet & Security Agency for use in public sector projects.
BDACS said it is working with Avalanche as a core global partner to ensure the system scales for institutional use.
“We tested the pilot to show the need for a fast and reliable blockchain that fits a regulatory-compliant stablecoin,” Justin Kim, Head of Asia at Ava Labs, said in a statement.
“The Avalanche technology and its growing ecosystem of real-world assets will support BDACS and Woori Bank to deliver a trusted, innovative solution for Korea’s digital economy.”
User tools and services
BDACS built more than token issuance, and the firm rolled out an issuance and management platform plus a user app. The app supports peer-to-peer transfers and lets users verify transactions.
BDACS said the framework covers issuance, custody and customer interfaces. That, the company said, helps firms and public bodies use KRW1 in real settings.
Plans for lending and public use
The company wants KRW1 to serve many uses, and BDACS flagged remittances, payments, investments and deposits as target areas. It also plans public sector pilots.
One idea is using KRW1 for fast, low-cost emergency payments and relief disbursements. BDACS said such uses could cut fees for recipients and speed aid delivery.
Bank role and legal readiness
Woori Bank is BDACS’s strategic partner, and the bank’s role includes holding escrow and taking part in technical tests. BDACS said the bank shows how traditional banks can fit into stablecoin systems.
The firm also said it is preparing KRW1 to meet Korea’s upcoming Digital Asset Basic Act and to be a technical standard for compliant stablecoins.
Business options and wider partnerships
BDACS said it will keep building partnerships across finance and tech. The company is open to licensing its stack and to co-development deals. It also said it is talking with global stablecoin networks to explore broader integrations.
Franklin Templeton and Ripple were not part of this announcement, but BDACS framed KRW1 as part of a wider trend where asset managers and banks test on-chain models.
A company view
“BDACS is not just a custody service provider,” Harry Ryoo, CEO of BDACS, said. “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.”
BDACS must now move from pilot to live use, and the firm will seek more partners and test real-world flows.
Regulators and banks will watch how escrow, custody and verification work at scale. If KRW1 runs as planned, it could offer a local, bank-backed stablecoin option for businesses and public bodies in Korea.
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