TL;DR
- South Korean BDACS signs an MOU with Circle to launch the “KRW1” stablecoin.
- The won-pegged stablecoin will be deployed on Circle’s new Arc blockchain.
- The launch coincides with the opening of Arc testnet, which attracts 100+ global institutions.
South Korean crypto custodian BDACS announced a strategic plan to issue “KRW1,” a new stablecoin pegged to the won (South Korea’s national currency). This move comes after the signing of a Memorandum of Understanding (MOU) with Circle, the issuer of USDC, to develop and deploy the new digital asset on Circle’s newly launched “Arc” blockchain.
According to a report by Yonhap News Agency, the Busan-based company aims to establish an “organic cooperative framework.” Ryu Hong-yeol, CEO of BDACS, described the agreement as a “significant step forward for Korea’s innovation to reach the global stage.”
He added that “by deploying KRW1 on Circle’s Arc, we are opening a gateway for Korean companies to participate in the global stablecoin network.” BDACS had registered the KRW1 trademark in December 2023, laying the groundwork for this launch.
Arc’s Launch Attracts Financial Giants
BDACS’s decision coincides with the public testnet launch of Circle Arc this week. Circle has described Arc as an “Economic Operating System for the Internet,” designed to integrate global financial infrastructure directly on the blockchain.
This new platform has already generated massive institutional interest, attracting the participation of over 100 global entities, including heavyweights like BlackRock, Goldman Sachs, Visa, Mastercard, and State Street.
The Arc network is characterized by offering predictable USD-based transaction fees, sub-second finality, and optional privacy settings, facilitating the use of both USDC and other fiat-pegged assets.
With the incorporation of KRW1, South Korea joins a growing list of countries, including Japan, Brazil, Mexico, and the Philippines, whose issuers are already testing their own national tokens on Arc.
This private industry development contrasts with regulatory discussions in the country. Recently, Sangmin Seo, chair of the Kaia DLT Foundation, criticized the Bank of Korea’s (BOK) proposal for local banks to be the sole leaders in the deployment of a won-pegged stablecoin, calling the plan “illogical,” although the BOK argues this would minimize AML risks.
