Korea’s won-backed stablecoin “KRW1” has made its first move onto the global stage through “Arc,” the newly launched blockchain developed by U.S. fintech firm Circle. This marks the first time a Korean currency-backed digital asset has been deployed on a foreign blockchain network — a milestone that could determine the future trajectory of Korea’s digital asset expansion.
Circle recently activated the public testnet of its Arc blockchain, naming BDACS, a Korean digital asset custody company, as one of its initial partners. BDACS has begun testing KRW1 on Arc’s ecosystem for global payments and asset transfers. The collaboration aligns with Circle’s strategy to expand beyond the U.S. dollar by integrating non-USD fiat-backed stablecoins into its network.
Arc is Circle’s next-generation financial infrastructure designed for fast settlements, automated fee systems, and integrated FX payments. The blockchain aims to serve as an “economic operating system” capable of real-time settlements and multi-currency exchanges, with over 100 global banks and fintech firms already participating.
Through this pilot, BDACS plans to demonstrate that a won-backed digital asset can operate within international payment systems. In the long term, the company envisions KRW1 evolving into a hub for cross-border payments across Asia. Industry observers view the initiative not merely as a blockchain test, but as a proof-of-concept for Korea’s first globally expandable stablecoin.
However, Korea’s domestic regulatory framework for stablecoins remains under development. Financial authorities are preparing to implement the Digital Asset Basic Act, which will address stablecoin issuance, collateral management, and disclosure standards. Legal interpretations concerning overseas transfers of won-backed digital tokens are also under review.
Industry analysts describe the KRW1-Arc collaboration as both an opportunity and a challenge — a potential “bridgehead” for Korea’s digital currency globalization, but one that must be built upon strict transparency and robust oversight.
Now operating on Circle’s Arc blockchain, KRW1 has moved beyond the experimental phase into reality. Whether this won-pegged token can establish itself in the global payment ecosystem remains to be seen, but its pilot run is already signaling a new frontier for Korea’s digital currency ambitions.
