Avalanche-Powered KRW1 Stablecoin Enters Global Payments With Rain

Korea’s first won-backed stablecoin, KRW1, is moving into global payments through an integration with stablecoin payments provider Rain. The transaction will enable businesses to accept cards issued in won that can be used at over 175 million Visa merchant outlets around the world.

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Avalanche-Backed KRW1 Stablecoin Joins Forces With Rain

According to Avalanche, Rain is adding KRW1 to its global payments network, giving businesses a way to use tokenized won internationally. The integration will link to card-based spending while maintaining the currency denomination in Korean won.

KRW1 was launched by South Korean digital asset custodian BDACS in partnership with Woori Bank. The stablecoin is pegged 1:1 to the South Korean won, and reserves are held to back up the circulating tokens.

The token is issued on the Avalanche infrastructure, and Rain is responsible for the payment layer required for the utilisation of the card. This enables users to use the money without conversion beforehand and pay for the transaction with KRW1.

These can be used to pay for business expenses, international students, cross-border business travel, and contractor payments. These areas may need access to funds outside South Korea that are denominated in won.

The Korean won is equivalent to nearly $3 trillion in broad money supply, but activity has not yet spread outside the local economy. KRW1 provides a digital route for extending won-based payments into wider commercial markets.

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Avalanche Expands Into Government Digital Infrastructure

The KRW1 development is also timely, as Avalanche is gaining adoption in government-funded digital systems. The UAE Telecommunications and Digital Government Regulatory Authority (UAE-TDG) recently announced its intention to adopt Avalanche technology in UAE PASS.

The project emphasizes the UAE PASS Digital Vault, which allows users to request, access, and share authentic government documents. The service is available to citizens, residents, and visitors nationwide.

The system will not run on a public network but rather on its own dedicated Avalanche Layer 1. This would bring the power to control permissions, privacy controls, and network rules into the hands of the regulator.

Despite these developments, the AVAX price is still bearish, down 7% over the last 7 days. At press time, the AVAX price was trading at $7.42, a 0.35% decline over the last day.