BDACS, a South Korean digital asset custodian, is planning to launch the Korean won-backed stablecoin, KRW1, on Circle’s new blockchain. This move marks a major step in expanding Korea’s presence in global digital finance and strengthen its role in the stablecoin market.
“This collaboration is a meaningful step for Korean innovation to leap onto the global stage,” said CEO Hongyeol Ryu. “By distributing KRW1 to Circle Arc, we have opened a gateway for Korean companies to participate in the global stablecoin network,” he added.
It has signed a memorandum of understanding with Circle and has established an “organic cooperative system”. This highlights their goal of building an interoperable digital finance network that links Korea’s innovation to markets across Asia-Pacific and beyond.
According to the report, BDACS registered the KRW1 trademark in December 2023. BDACS previously launched KRW1 on the Avalanche blockchain in September.
This comes just a day after Circle launched the public testnet of Arc. KRW1 joins a growing list of national stablecoins being tested on the network, which already includes issuers from Japan, Brazil, Mexico, Philippines and others.
The platform has attracted participation from over 100 major institutions.
Arc represents a major step toward creating a more open and programmable financial system for the global economy. It’s built to make on-chain transactions faster, more efficient, and easier to use, offering predictable dollar-based fees, near-instant settlement, and optional privacy features.
By integrating with Circle’s full-stack platform, Arc supports a wide range of use cases, from lending and capital markets to foreign exchange and global payments. Adding KRW1 to the network could boost its visibility and open new opportunities in the global stablecoin market.
Interest around stablecoins is rapidly rising in South Korea. At least eight major banks are planning to issue their own won-backed stablecoins between late 2025 and early 2026.
Bank of Korea recently raised concerns over won-backed stablecoins, warning that private issuers may lack the public trust needed to keep such digital currencies stable. It noted that while stablecoins offer innovation, they also carry risks similar to past currency failures. Instead it urged traditional banks to lead stablecoin issuance.
The central bank also stressed that it is not trying to block innovation but ensure that it happens safely and sustainably.
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