{"id":48383,"date":"2025-09-19T04:01:33","date_gmt":"2025-09-19T04:01:33","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=48383"},"modified":"2025-09-19T04:01:33","modified_gmt":"2025-09-19T04:01:33","slug":"south-koreas-bdacs-launches-first-won-backed-stablecoin-ahead-of-q4-framework","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=48383","title":{"rendered":"South Korea\u2019s BDACS Launches First Won-Backed Stablecoin Ahead Of Q4 Framework"},"content":{"rendered":"
\n

As the South Korean crypto industry awaits the highly anticipated regulatory framework, digital assets custodian BDACS and financial giant Woori Bank have partnered to launch the first stablecoin pegged to the Korean Won (KRW) on the Avalanche blockchain.<\/p>\n

First Won-Pegged Stablecoin Launched On Avalanche<\/h2>\n

Digital asset custody firm BDACS officially launched<\/a> the first South Korean won-backed stablecoin, KRW1, on the Avalanche blockchain in collaboration with Woori Bank, one of the four largest domestic financial institutions in the country<\/p>\n

According to the X announcement<\/a>, the stablecoin is currently in a pilot phase, following a successful proof-of-concept (PoC), and each KRW1 token is 1:1 collateralized with won held in escrow at Woori Bank.<\/p>\n

BDACS reportedly plans to utilize the won-pegged stablecoin as a \u201clow-cost payment and settlement system for public-sector programs, such as emergency relief disbursements, by significantly lowering payment processing fees.\u201d<\/p>\n

Additionally, KRW1 is \u201cbuilt for more than markets,\u201d Avalanche\u2019s X thread read, as it could become a \u201ctechnical standard for stablecoins in Korea,\u201d with the upcoming regulatory framework.<\/p>\n

\u201cBDACS 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,\u201d the press release detailed<\/a>.<\/p>\n

Harry Ryoo, BDACS\u2019s CEO, affirmed that the digital assets firm is \u201cbuilding 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.\u201d<\/p>\n

Banks, Crypto Industry Anticipate October Framework<\/h2>\n

KRW1 launches ahead of the regulatory framework by South Korea\u2019s Financial Services Commission (FSC). As reported<\/a> by Bitcoinist, the financial authority is expected to release the long-awaited guidelines for the issuance and distribution of won-backed stablecoin at the start of next quarter.<\/p>\n

On August 18, Park Min-kyu, a member of the Democratic Party of Korea (DPK), affirmed that the government\u2019s bill was expected to be submitted to the National Assembly in October. The lawmaker revealed that he had recently received a report from the FSC on the direction of stablecoins.<\/p>\n

The FSC has been working to develop digital assets legislation and shift its regulatory approach, establishing the Virtual Asset Committee in November 2024 to prepare the next phases of its regulatory roadmap and finalize the second one by the end of 2025.<\/p>\n

Multiple bills related to the issuance and distribution of won-pegged stablecoins have been introduced in South Korea\u2019s National Assembly, including two rival bills in July by Korea\u2019s ruling and opposition parties.<\/p>\n

Ahn Do-gil, a member of the Planning and Finance Committee from the Democratic Party, introduced the \u201cAct on the Issuance and Distribution of Value-Stable Digital Assets.\u201d On the same day, Kim Eun-hye, a member of the Land, Infrastructure, and Transport Committee from the People Power Party (PPP), proposed the \u201cAct on Payment Innovation Using Value-Fixed Digital Assets.\u201d<\/p>\n

In June, Min Byung-deok, a member of the National Assembly\u2019s Government Committee, also introduced the \u201cDigital Assets Basic Act,\u201d which proposes allowing the issuance of won-pegged stablecoins and establishing a Digital Asset Committee under the direct authority of the president.<\/p>\n

The banking sector has been studying two legalization scenarios, as it\u2019s been unclear whether non-bank entities will be allowed to be stablecoin issuers. Notably, South Korea\u2019s biggest banks have reportedly been in talks with Tether and Circle to discuss potential partnerships.<\/p>\n

According to local reports<\/a>, the CEOs of Shinhan Financial Group and Hana Financial Group CEO had separate meetings last month with Heath Tarbert, the president of Circle and a Tether official. Similarly, KB Financial Group and Woori Bank were also expected to meet with Tarbert.<\/p>\n

\"stablecoin,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As the South Korean crypto industry awaits the highly anticipated regulatory framework, digital assets custodian BDACS and financial giant Woori Bank have partnered to launch the first stablecoin pegged to the Korean Won (KRW) on the Avalanche blockchain. First Won-Pegged Stablecoin Launched On Avalanche Digital asset custody firm BDACS officially launched the first South Korean […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-48383","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/48383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48383"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/48383\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}