The development of Stablecoin in South Korea has improved with the launch of KRW1, a won token issued on the Avalanche Blockchain.
Summary
- BDACS has launched KRW1, published a new South Korean won Stablecoin on the Avalanche Blockchain.
- Each WFD1 token is fully supported 1: 1 with held in Escrow at Woori Bank, with real-time proof-of-reserves integration.
- The rollout follows earlier pilots such as KRWIN and adds Momentum to the growing Stablecoin market in Zuid -Korea.
- The Financial Services Commission (FSC) of Zuid -Korea draws up rules for Stablecoins, expects in October as part of the Virtual Asset User Protection Act.
The digital activity company based on Seoul BDACS The launch of KRW1 announced on September 17, a Stablecoin fully supported by South Korean won. According to a press release shared with crypto.news, the rollout follows a successful proof-of-concept that is being carried out in collaboration with Woori Bank, one of the most important financial institutions in the country.
Each WFD1 token is 1: 1 collateral with won in Escrow at Woori Bank, with real-time API integration that makes verifiable proof of reserves possible. Token is initially published on the Avalanche Blockchain, which, according to BDACS, was selected for his security and performance, with plans to expand to extra networks.
In addition to the issue, BDACS has built up a framework for management and user applications, including peer-to-peer transfers and transaction verification. The company said that KRW1 is expected to be used for transfers, payments, investments and ultimately programs for public sector such as emergency aid expenditure.
BDACS CEO Harry Ryoo said that KRW1 is intended to serve as a core infrastructure for the Digital Asset market of Korea, with plans to support business, institutional and public sectors.
“We build the backbone of the market for digital assets and serve both business, institutional and public partners. KRW1 marks a turning point for our company, and we believe it will become a fundamental possession for the digital economy.”
The launch of KRW1 comes when the South Korean market shows the growing interest in Stablecoins, building on earlier pilots in the country. It follows FANC and the KRWIN pilot of Initech, the first won Stablecoin test, who debuted in August as part of the efforts to create a domestic stabilecoin market.
Local surveys have emphasized a strong requirement for citizens, who are already highly dependent on dollar-supported tokens such as USDT (Tether) and USDC (USD Coin) for trade and other financial transactions.
Large banks have also investigated Stablecoin initiatives. A group of eight financial institutions has worked on a joint venture for a digitally active act, warning that without domestic alternatives the dollar-supported coins could dominate the local market.
Regulators prepare the framework for stablecoins in Zuid -Korea
The launch of KRW1 also comes when the South Korea Financial Services Commission (FSC) works on a regulatory framework for Stablecoins. As reported earlier by crypto.news, the FSC draws up a bill that the requirements will outline for issue, collateral management and internal control systems.
The legislation will be part of the second phase of the Virtual Asset User Protection Act in October, first introduced in the end of 2023. Legislers have confirmed that they have been informed about the direction of the rules for the sector, and the framework of the framework of the country’s financial system can be offered.
Zuid -Korea’s efforts follow comparable initiatives in Japan and Hong Kong, where supervisors also build various policy measures to support the sector. The push is influenced by the recent rollout of supporting legislation of the United States for the sector, which further accelerates global competition.
While Dollar-Pegged assets will continue to dominate the global scene for the time being, his efforts such as the launch of KRW1 and the upcoming framework of the FSC that Zuid-Korea positions itself to set foot in the Stablecoin market.
