Circle’s Arc to Host Korea’s First KRW1 Stablecoin
Circle’s Arc public testnet, branded as an internet economic operating system, has attracted over 100 global institutions including BlackRock, Goldman Sachs, Visa and Mastercard. South Korea’s crypto custodian BDACS signed an MOU with Circle to develop and issue KRW1 stablecoin on Arc, marking the country’s first won-backed token launch. KRW1 stablecoin will be fully collateralized by Korean won deposits at Woori Bank, with real-time reserve attestations via bank APIs. The KRW1 trademark was registered in December 2023 following a proof of concept on Avalanche in September.
Arc testnet offers sub-second finality, predictable USD-denominated fees, optional privacy and seamless USDC integration. Pilots from Japan, Brazil, Mexico and the Philippines are also underway. Kaia DLT Foundation chair Sangmin Seo criticized the Bank of Korea’s plan to limit stablecoin issuance to banks, urging inclusive rules for all regulated providers. Traders should watch KRW1 stablecoin adoption for its potential to boost liquidity and cross-border settlements in Asia’s crypto markets.
Neutral
This news is classified as neutral for the KRW1 stablecoin’s price. Stablecoins are designed to maintain a fixed peg, so the launch of KRW1 on Circle’s Arc testnet will not directly drive price volatility. In the short term, traders may see increased liquidity and trading pairs for KRW1, but its value will remain stable against the Korean won. In the long term, broader adoption of KRW1 could expand on-chain settlement and cross-border use cases in Asia, supporting network growth rather than speculative gains. Overall, the market impact is expected to be supportive of infrastructure development without altering the stablecoin’s peg.