Key facts
- Korea's first won-backed stablecoin, KRW1, is entering global payments via integration with Rain.
- Businesses can accept card payments in South Korean won at over 175 million Visa merchant outlets globally.
- KRW1 is pegged 1:1 to the South Korean won, with reserves held to back circulating tokens.
- The token is issued on Avalanche infrastructure, with Rain managing the payment layer.
- The UAE Telecommunications and Digital Government Regulatory Authority plans to adopt Avalanche technology for UAE PASS.
Korea's first won-backed stablecoin, KRW1, is expanding its reach into global payments through a new integration with stablecoin payments provider Rain. This partnership allows businesses to accept card payments denominated in South Korean won, which can be used at over 175 million Visa merchant outlets worldwide, without requiring prior currency conversion.
KRW1, launched by South Korean digital asset custodian BDACS in collaboration with Woori Bank, is pegged 1:1 to the South Korean won, with reserves held to back its circulating tokens. The stablecoin operates on the Avalanche infrastructure, while Rain manages the necessary payment layer for card utilization. This enables users to spend funds denominated in won without immediate conversion.
The integration is expected to facilitate payments for business expenses, international students, cross-border business travel, and contractor payments, particularly for those needing access to won-denominated funds outside South Korea. The KRW1 stablecoin offers a digital pathway to extend the use of won-based payments into broader commercial markets, addressing the current limitation of the South Korean won's broad money supply activity being largely confined to the local economy.
In parallel, Avalanche is seeing increased adoption in government-funded digital infrastructure. The UAE Telecommunications and Digital Government Regulatory Authority recently declared its intent to utilize Avalanche technology for its UAE PASS Digital Vault service, which allows users to manage government documents. This system will operate on a dedicated Avalanche Layer 1 network, granting the regulator control over permissions and privacy.