South Korea’s official stablecoin, KRW1, will be issued on Circle’s Arc blockchain. This marks the second integration for the stablecoin after its initial launch on Avalanche.
Summary
- South Korean company BDACS has partnered with Circle to launch its Korean won-backed stablecoin, KRW1, on Circle’s new Arc blockchain, aiming to expand South Korea’s reach in the global stablecoin market.
- Fully backed by the Korean won and verified through Woori Bank, KRW1 represents South Korea’s growing push for regulated digital assets as the government prepares new stablecoin legislation.
According to a recent report from Yonhap News, South Korean digital asset company BDACS has announced plans to issue its 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 these efforts, BDACS has signed a Memorandum of Understanding with Circle. The agreement between the two stablecoin issuers aims to create a framework for technical cooperation, regulatory alignment and ecosystem development.
This partnership is expected to leverage Circle’s expertise in stablecoin issuance and blockchain infrastructure to ensure the secure and transparent operation of KRW1.
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BDACS CEO Hongyeol Ryu sees the company’s partnership with Circle as a meaningful step in 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,” said Ryu.
Described as Circle’s “most ambitious infrastructure play yet,” Arc is a relatively new stablecoin-native blockchain founded by the stablecoin giant in August 2025. The new blockchain aims to serve as a basis for tokenized assets, on-chain payments and programmable financing.
The Arc blockchain integrates directly with Circle’s existing products and services, including major stablecoins such as USDC (USDC) and EURC (EURC). Bringing KRW1 into Circle’s stablecoin-driven blockchain could help the token gain greater global exposure as it prepares to enter the broader stablecoin market.
KRW1 and South Korea’s attempt at stablecoin dominance
Launched in September 2025, KRW1 is a stablecoin fully backed by the South Korean won. One of the first to the market, each token is backed at a 1:1 ratio, with the Korean Won held in escrow at Woori Bank with real-time API integration enabling verifiable proof of reserves.
Initially, the project was released on the Avalanche (AVAX) blockchain, which BDACS claimed was chosen for its security features and performance. Although it also plans to integrate the won-pegged stablecoin into more networks over time.
In preparation for the launch, BDACS has already completed the trademark registration for KRW1 in December 2023, indicating its long-term commitment to building a trusted and regulated digital asset pegged to the Korean won.
As previously reported by crypto.news, the company stated that KRW1 is designed to facilitate remittances, daily payments and investment activities. BDACS also expects that the token will eventually be used in government initiatives such as emergency aid distribution.
The launch of KRW1 comes amid a rise in the number of South Korean companies expressing interest in entering the stablecoin market with tokens pegged to the local currency. In mid-September 2025, KOSCOM, an affiliated firm of the Korea Exchange, reportedly applied for five stablecoin trademarks, including KSDC, KRW24, KRW365, KOSWON, and KORWON.
Meanwhile, fanC and Initech launched the first pilot for a Korean-mined pegged stablecoin in August. The pilot, called KRWIN, tested the feasibility of the token, including portability and real-world applications. However, so far the two companies have refrained from announcing an official release date for KRWIN.
Additionally, it was last reported that South Korea’s Financial Services Commission was working on comprehensive regulations for stablecoins. The legislation is expected to be introduced by the end of 2025. This framework is part of the country’s broader efforts to regulate digital assets and accelerate the adoption of stablecoins.
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