FanC, a South Korean blockchain company, has launched a test run of what is being called the nation’s first stablecoin backed by the Korean won. The pilot was a collaboration with financial software firm Initech, marking a significant step in the race to introduce a won-pegged digital asset to the public market, The Korea Herald reported.
The stablecoin, named KRWIN, is pegged at a 1:1 ratio to the Korean won. This test issuance is a first for a private entity in South Korea and aims to assess the token’s technical viability, including its transferability and potential real-world uses. While there is no official public release date, the companies plan to eventually use KRWIN for various applications, including payments, global remittances, and tourism.
For now, the circulation of the token is limited to a closed group of affiliated companies. A fanC spokesperson stated that the pilot combines financial security with blockchain technology and is a major milestone for stablecoin adoption in the country. “KRWIN will establish itself as a leading private model driving future demand for won-denominated digital assets,” the spokesperson said. FanC has already filed a trademark for KRWIN, suggesting a public launch may be planned in the near future.
The move comes amid growing interest from major South Korean financial institutions in creating a won-backed stablecoin. This interest was sparked by comments from President Lee Jae-myung, who has pledged support for cryptocurrency assets backed by the won.
