South Korea’s BDACS Launches KRW1 Stablecoin on Avalanche

* BDACS launches KRW1, a won-pegged stablecoin on Avalanche. * Debut timed ahead of new South Korean stablecoin regulations. South Korea's BDACS announced the launch of KRW1, a stablecoin pegged to the South Korean won and designed for cross-border payments, remittances, deposits, and investments. This debut coincides with South Korea's preparations to enact the Digital Asset Basic Act in 2026, which will regulate stablecoins and strengthen oversight of the digital asset market. On September 18, 2025, Cryptopolitan, Brave New Coin, and FinanceFeeds reported on the new stablecoin. BDACS issues KRW1 on the Avalanche blockchain, and the stablecoin is backed on a 1:1 basis by funds held in escrow at Woori Bank, one of South Korea’s largest financial institutions. In addition, BDACS developed a comprehensive framework to manage KRW1, which includes systems for minting, reserve management, and a real-time connection with Woori Bank. The company provides transparency through proof of reserves and has built a user-facing application for peer-to-peer transfers and transaction verification. This launch strategically aligns with South Korea's forthcoming Digital Asset Basic Act. The act will require stablecoin issuers to meet strict regulatory conditions, such as obtaining a license from the Financial Services Commission (FSC), meeting minimum capital requirements, and maintaining reserves in high-quality liquid assets. These regulations aim to enhance investor protection and ensure stability across the financial system. BDACS views its early entry into the market as a competitive advantage, as the collaboration with Woori Bank strengthens KRW1's institutional foundation and could encourage other major South Korean banks to explore similar ventures. The company also plans to expand KRW1 to additional blockchains and pursue collaborations with issuers of other stablecoins like USDT and USDC. According to CoinMarketCap, Avalanche (AVAX), the blockchain powering KRW1, was trading at $35.05 as of September 18 at 22:49 UTC, with its 24-hour trading volume showing a 14.3% increase.