Stablecoin, backed by South Korean won, propelled by an avalanche of power - Information
In a significant move towards integrating traditional finance with blockchain infrastructure, BDACS has introduced KRW1, South Korea's first won-backed stablecoin, on the Avalanche blockchain. This low-cost payment and settlement tool is set to be used in public-sector programs, including emergency relief, making it a crucial development for the country.
BDACS chose Avalanche for deploying KRW1 due to its high performance, security, scalability, and reliability. These attributes have been recognised by Korea’s Internet & Security Agency (KISA) for public-sector applications. Avalanche's platform offers a full-stack framework for the stablecoin, including multi-chain design, institutional-grade custody, and compliance features, ensuring scalable, secure, and low-cost payment settlements.
The launch of KRW1 is not just another market instrument but a strategic move that could set a precedent as a technical standard for stablecoins in South Korea. Industry watchers believe that KRW1 could pave the way for a new era in digital finance, where those who capture trust, liquidity, and market share fastest are likely to reap rewards.
KOSCOM, the IT arm of Korea Exchange, has also entered the stablecoin scene by filing trademarks for five stablecoin-related brands: KSDC, KRW24, KRW365, KOSWON, and KORWON. Meanwhile, Bitwise has filed an S-1 with the U.S. Securities and Exchange Commission to launch an exchange-traded fund tied to Avalanche.
The ripple effect on global stablecoin adoption is becoming clearer, with the U.S. setting the tone with the GENIUS Act. Major issuers like Tether, Circle, and JPYC are pursuing ambitious agendas in the next phase of digital finance.
The reserves of KRW1 are verifiable in real-time due to its API integration, adding another layer of transparency and trust to the stablecoin. This transparency is highlighted by Avalanche's official account, which noted that KRW1's launch sets a new benchmark for transparency and trust as Korea prepares its Digital Asset Basic Act.
The race in stablecoin adoption now focuses on scale rather than just adoption. Avalanche is providing the performance, scalability, and security for KRW1's adoption, positioning itself as a key player in the global stablecoin market. The launch of KRW1 on the Avalanche blockchain marks a major step forward in this race.
In the aftermath of the KRW1 launch, Avalanche's native token, AVAX, gained momentum, trading at $32.96 after a 9.38% jump in the last 24 hours. As the world continues to embrace digital finance, the adoption of stablecoins like KRW1 could revolutionise the way we conduct financial transactions, particularly in the public sector.
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