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BDACS launched KRW1, South Korea’s first won-backed stablecoin, on Circle’s Arc blockchain testnet this week, as regulatory debate intensifies over which institutions should be permitted to issue Korean currency-pegged digital assets.
Ryu Hong-yeol, CEO of BDACS, said, “This collaboration is a meaningful step forward for Korea’s innovation to reach the global stage.” He further added, “The won-backed stablecoin KRW1 will open doors for Korean companies to access international markets more easily.”
With Circle’s Arc already embraced by over 100 major financial institutions worldwide, this development is expected to reshape South Korea’s financial landscape.
Circle’s Arc blockchain has quickly gained support from leading global financial giants including BlackRock, Goldman Sachs, Visa, and Mastercard. The public testnet’s rapid adoption showcases Arc’s potential to transform the stablecoin ecosystem. Industry expert Jae-Min Park stated,
“Circle’s Arc offers unparalleled speed and security, making it ideal for stablecoin projects like KRW1.”
This momentum underlines Arc’s role as a pioneering economic operating system, capable of handling complex global transactions with predictability and efficiency.
KRW1, South Korea’s first won-backed stablecoin, was unveiled by BDACS on the Circle Arc blockchain. Ryu Hong-yeol expressed confidence in the project’s future: “The stablecoin will provide Korean companies with a competitive edge in the digital economy.”
Moreover, he highlighted the importance of collaboration, saying, “Working with Circle strengthens our position in the global financial ecosystem and drives innovation.” KRW1 aims to bring new transparency and accessibility to stablecoin usage in South Korea.
Circle’s Arc public testnet, launched shortly before KRW1’s announcement, attracted participation from over 100 financial institutions worldwide. Designed for seamless use of USDC and won-backed stablecoins, Arc offers predictable fees and fast transaction finality.
Financial analyst Sun-woo Choi commented, “The robustness of Circle’s Arc makes it a game-changer for issuers and users of won-backed stablecoins alike.” This acceptance reflects Arc’s growing influence as a reliable platform supporting the future of digital finance.
Amid these technological advances, regulatory debate intensifies. The Bank of Korea’s proposal for banks to lead won-backed stablecoin issuance faces criticism. Sangmin Seo, chair of the Kaia DLT Foundation, called the plan “illogical,” stating, “Such a narrow approach risks stifling innovation and competition.”
Seo advocates for clear, inclusive regulations covering all issuers to create a fair and dynamic won-backed stablecoin market. This regulatory clarity is crucial as South Korea aims to become a leader in blockchain-driven finance.
