BDACS Launches Stablecoin KRW1 to Boost Won's Global Reach

BDACS, a South Korean digital-asset custodian, is developing a stablecoin called KRW1 to help internationalize the won currency by linking it with global markets. According to Kim Tak-jong, co-founder and chief strategy officer of BDACS, this could fill a gap in Korea's on-chain infrastructure. He explained that most global transactions are currently done in dollars, but with KRW1, Korean users can participate in the international market using their own currency.

Kim pointed out that over $33.9 billion moved from domestic exchanges to overseas platforms in the first half of this year alone, driven by investment demand rather than tax evasion. He also noted that net stablecoin outflows from domestic exchanges exceeded $360 million in June. If Korean users are forced to use dollar-based stablecoins due to a lack of on-chain infrastructure for the won, it could lead to further capital outflows.

BDACS aims to launch KRW1 and build related infrastructure, with the goal of creating stronger links between global capital and the Korean market. Kim emphasized that regulation is crucial in this process, calling for a balanced approach that supports innovation while ensuring trust in financial transactions.