Quick Breakdown
- BDACS partners with Circle to launch KRW1 stablecoin on Arc after its Avalanche debut.
- Arc testnet attracts over 100 global financial institutions, including Visa and BlackRock.
- Experts urge inclusive regulations, opposing BOK’s plan to restrict stablecoin issuance to banks.
BDACS expands KRW1 to Circle’s Arc blockchain
South Korean crypto custodian BDACS is preparing to roll out its won-backed stablecoin, KRW1, on Circle’s new blockchain, Arc, marking the stablecoin’s second integration after its initial debut on Avalanche.
BDACS plans to Join Circle’s Arc Layer 1 Blockchain as Stablecoin Partner@BDACSKorea has signed an MOU with @circle , the issuer of USDC and a global leader in digital asset infrastructure, to explore collaboration opportunities on @arc – Circle’s new Layer 1 blockchain now… pic.twitter.com/sEHHFKELEm
— BDACS (@BDACSKorea) October 29, 2025
The Busan-based firm formalized the collaboration through a memorandum of understanding (MOU) with Circle, aiming to build what it described as an “organic cooperative framework.” The partnership is expected to enhance Korea’s presence in the global stablecoin market.
“By deploying KRW1 on Circle’s Arc, we are opening a gateway for Korean companies to participate in the global stablecoin network,”
said Ryu Hong-yeol, CEO of BDACS.
Circle’s Arc testnet gains global traction
The collaboration follows Circle’s launch of the Arc public testnet earlier this week. Circle has branded Arc as an “Economic Operating System for the internet,” connecting traditional finance with blockchain infrastructure.
Arc’s early testnet participants include financial heavyweights such as BlackRock, Goldman Sachs, Visa, Mastercard, and State Street. The blockchain features predictable USD-based fees, near-instant transaction finality, and optional privacy controls, enabling seamless interaction between USDC and other fiat-backed assets.
Stablecoin issuers from Japan, Brazil, Mexico, and the Philippines are already testing their national tokens on Arc, with Korea’s KRW1 now joining the list.
Debate over stablecoin issuance in Korea
The expansion of KRW1 coincides with growing debate over who should control stablecoin issuance in South Korea. Sangmin Seo, chair of the Kaia DLT Foundation, criticized the Bank of Korea’s (BOK) proposal allowing only regulated banks to issue won-backed stablecoins.
Seo argued that such a bank-exclusive model is “illogical” and could stifle innovation. Instead, he advocated for clear regulatory standards that would enable both banking and non-banking institutions to issue stablecoins under proper oversight.
Notably, South Korea won backed stablecoin KRW1, fully backed 1:1 by reserves held at Woori Bank, was launched in September. Positioned as regulator-ready and aligned with the forthcoming Digital Asset Basic Act, KRW1 aims to establish a new benchmark for transparency and compliance in Korea’s digital finance sector.
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