BDACS (Busan Digital Asset Custody Services) has announced it will be issuing the first Won-backed stablecoin on the Avalanche network, while Koscom submitted similar stablecoin trademarks.
The South Korean regulated custodian has selected Avalanche, a top 15 blockchain network, as the blockchain on which the stablecoin efforts will be issued following a successful Proof-of-Concept, with participation from Woori Bank to hold the reserves.
Avalanche celebrated the news on their official X page:
Head of Asia at Ava Labs Just Kim supported this by stating:
The successful test pilot of KRW1 demonstrates the need for a highly-performant and reliable blockchain tailored for a regulatory-compliant stablecoin. The Avalanche technology and its growing ecosystem of real-world assets will support BDACS and Woori Bank to deliver a trusted, innovative solution for Korea’s digital economy.
Meanwhile, Koscom (Korean Securities Computer Corp.) has filed this week for several national trademark protections also relating to Won-backed stablecoins and services, namely for: KOSWON, KORWON, KSDC, and others.
Both of these developments hits a surging interset in the use of stablecoins for local and cross-borader settlements. In 2024, it was reported that the daily FX turnover of KRW came to $68B, and the currency is steadily moving up to be included in the top 10 FX trading pairs.
