Korea BDACS' official stablecoin KRW1 will be issued on Circle's blockchain Arc. This is the stablecoin’s second integration, following its initial launch on Avalanche.
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- Korean company BDACS has partnered with Circle to launch the Korean won-backed stablecoin KRW1 on Circle's new Arc blockchain, aiming to expand South Korea's reach into the global stablecoin market.
- Fully backed by the Korean won and verified through Woori Bank, KRW1 represents South Korea’s increasing push towards regulated digital assets as the government prepares a new stablecoin bill.
According to a recent report in Yonhap News, South Korean digital asset company BDACS has announced plans to start issuing an official Korean Won-backed stablecoin KRW1 on Circle's new layer-1 blockchain Arc. The initiative aims to strengthen South Korea's presence in the global digital currency ecosystem by expanding the adoption of compliant asset-backed stablecoins.
To further this initiative, BDACS has signed a Memorandum of Understanding with Circle. The agreement between the two stablecoin issuers aims to establish a framework for technical cooperation, regulatory coordination, and ecosystem development.
The partnership is expected to leverage Circle's expertise in stablecoin issuance and blockchain infrastructure to ensure the safe and transparent operation of KRW1.
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Hongyeol Ryu, CEO of BDACS, believes the collaboration with Circle is a meaningful step towards bringing Korean innovation to the global financial ecosystem, especially with the rise of non-dollar-backed stablecoins.
“By distributing KRW1 to Circle's Arc, we have opened a gateway for Korean companies to participate in the global stablecoin network,” Ryu said.
Described as Circle's “most ambitious infrastructure strategy to date,” Arc is a relatively new stablecoin-native blockchain established by the stablecoin giant in August 2025. The new blockchain aims to serve as the foundation for tokenized assets, on-chain payments, and programmable finance.
The Arc blockchain integrates directly with Circle's existing products and services, including major stablecoins such as USDC (USDC) and EURC (EURC). Incorporating KRW1 into Circle's stablecoin-driven blockchain could give the token more global exposure in preparation for entry into the broader stablecoin market.
KRW1 and South Korea’s attempt to dominate stablecoins
KRW1, launched in September 2025, is a stablecoin fully backed by the Korean won. One of the first tokens on the market, each token is backed at a 1:1 ratio, with Korean Won held in Woori Bank escrow and real-time API integration to enable verifiable proof of reserves.
Initially, the project was published on the Avalanche (AVAX) blockchain, with BDACS claiming that it was chosen for its security features and performance. However, we also plan to integrate Wonepeg's stablecoin into more networks in the future.
In preparation for launch, BDACS has completed trademark registration for KRW1, starting as early as December 2023, demonstrating its long-term commitment to building a trusted and regulated digital asset related to the Korean Won.
As previously reported by crypto.news, the company said KRW1 is designed to facilitate remittances, daily payments, and investment activities. BDACS also expects the tokens to eventually be used for government initiatives such as emergency aid distribution.
The launch of KRW1 comes amid a growing number of South Korean companies expressing interest in entering the stablecoin market with tokens pegged to local currencies. In mid-September 2025, KOSCOM, an affiliate of Korea Exchange, reportedly applied for trademarks for five stablecoins, including KSDC, KRW24, KRW365, KOSWON, and KORWON.
Meanwhile, back in August, fanC and Initech launched the first pilot of a stablecoin pegged to the Korean won. The pilot, named KRWIN, tested the feasibility of the token, including transferability and real-world applications. However, so far both companies have refrained from announcing KRWIN's official release date.
Additionally, the Korean Financial Services Commission was last reported to be working on comprehensive regulations for stablecoins. The bill is expected to be introduced by the end of 2025. The framework is part of the country's broader efforts to regulate digital assets and accelerate the adoption of stablecoins.
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