South Korean Crypto Custodian BDACS plans to issue a winner-backed StableCoin, “KRW1,” on Circle’s newly launched Blockchain Arc.
The Busan-based company signed a Memorandum of Understanding (MOU) with Circle to develop and deploy KRW1 in the arch, establishing what it calls an “organic cooperative framework,” according in a Wednesday report by Yonhap News Agency.
“This collaboration is a significant step forward for Korea’s innovation to reach the global stage,” said Ryu Hong-yeol, CEO of BDACS. “By deploying KRW1 on the Circle arc, we are opening a gateway for Korean companies to participate in the global StableCoin network,” he added.
BDACs registered the KRW1 trademark in December 2023, setting the stage for the StableCoin rollout, per reports.
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Arc Testnet is live
The transfer will come a day later Circle arc launches public testnet. In a Tuesday announcement, Circle described ARC as an “economic operating system for the internet,” designed to integrate the global financial infrastructure directly into Onchain.
Arc’s Testnet has drawn participation from more than 100 global institutions, including BlackRock, Goldman Sachs, Visa, MasterCard and State Street.
The network features predictable US dollar-based transaction fees, sub-second endpoints and optional privacy settings, allowing seamless use of both USDC (USDC) and other fiat-pegged assets.
StableCoin issuers from Japan, Brazil, Mexico, and the Philippines are already testing their own national tokens on the ARC, and Korea’s KRW1 has joined that list.
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Expert criticizes plan led by bank StableCoin in Korea
Sangmin Seo, Chairman of the Kaia DLT Foundation, criticized the Bank of Korea’s (BOK) proposal for Local banks to lead rollout of winners backed by StableCoins, calling it “irrational.”
The BOK argued that banks, which are heavily regulated under capital, foreign exchange, and Anti-Money Laundering (AML) Frameworks, will reduce the risks tied to the introduction of StableCoins. It also proposed forming a joint policy body involving monetary and financial authorities to oversee issuers and issuance volumes.
However, SEO rejected the central bank’s reasoning. Instead of restricting issuance to banks, he proposed clear rules for all potential issuers, both banking and non-banking, that meet certain regulatory standards.
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