Introduction of KRW1 Stablecoin
In a significant move to bolster South Korea’s position in the global digital currency market, BDACS, a South Korean digital asset firm, has unveiled its plans to launch the KRW1, a stablecoin pegged to the Korean won, on Circle’s newly established Arc blockchain. This announcement comes after KRW1’s initial deployment on the Avalanche network, marking a notable second integration for the stablecoin.
Partnership with Circle
As reported by Yonhap News, BDACS has formalized its partnership with Circle through a memorandum of understanding aimed at fostering collaboration on technology, regulatory compliance, and ecosystem expansion. This strategic alliance will harness Circle’s expertise in stablecoin infrastructure and issuance, providing a secure and transparent environment for KRW1’s operations.
Hongyeol Ryu, CEO of BDACS, emphasized the importance of this partnership, stating that it represents a pivotal move in introducing Korean innovations into the global financial landscape, particularly at a time when non-dollar backed stablecoins are gaining traction. “By integrating KRW1 into Circle’s Arc, we are creating avenues for Korean enterprises to engage with the global stablecoin ecosystem,” Ryu noted.
Features of Circle’s Arc Blockchain
Circle’s Arc blockchain, viewed as its most ambitious project so far, was launched in August 2025 and is designed to support tokenized assets, on-chain payments, and programmable finance. Working in sync with Circle’s existing offerings, including major stablecoins such as USDC and EURC, the addition of KRW1 is poised to enhance its visibility as it prepares to compete in the broader stablecoin market.
KRW1’s Design and Security
First introduced in September 2025, KRW1 is designed to be a fully asset-backed stablecoin, with each token guaranteed by a corresponding Korean won held securely in escrow at Woori Bank. This is facilitated by a real-time API that provides verifiable proof of reserves, ensuring trust in the coin’s backing.
Future Prospects and Market Trends
BDACS initially selected Avalanche for KRW1’s launch due to its secure architecture and robust performance, with intentions to explore additional network integrations in the future. The company has also filed for trademark protection for KRW1 as early as December 2023, underscoring its commitment to establishing a regulated and reliable digital currency linked to the won.
KRW1’s introduction is timely, coinciding with a growing interest among South Korean companies aiming to venture into the stablecoin sector. Recent reports have indicated that KOSCOM, a subsidiary of the Korea Exchange, has applied for multiple stablecoin trademarks, highlighting a burgeoning market with products like KSDC, KRW24, KRW365, KOSWON, and KORWON.
Earlier in August, two firms, fanC and Initech, tested the waters with KRWIN, a Korean-won pegged stablecoin pilot, to assess its transferability and practical applications, although they have not announced a formal launch date yet. Meanwhile, the South Korean Financial Services Commission is actively developing a regulatory framework for stablecoins which is expected to be finalized by the end of 2025, as part of broader efforts to facilitate stablecoin adoption and regulate digital assets in the nation.
