SS #32 - BDACS Launches Won-Backed Stablecoin

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Good Morning.

Happy Friday. This week, the crypto spotlight is shifting to the Asia-Pacific region. In a notable development, South Korean crypto custody firm BDACS has launched a proof-of-concept for KRW1, a stablecoin pegged to the Korean won and built on the Avalanche network. The move signals a strategic push by a local player to get ahead in the country's developing stablecoin market.

Meanwhile, Australia has also made a significant step by introducing a class exemption that allows licensed intermediaries to distribute stablecoins without needing separate regulatory approvals. This marks a first for the country’s crypto rules and highlights the ongoing global race to establish clear frameworks for stable digital assets. These developments, from Seoul to Canberra, reaffirm the growing importance of stablecoins in the global financial landscape. As the regulatory picture becomes clearer, more countries are joining the "stablecoin war," and we'll be here to cover every detail.

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In Today's Edition:

• Headline: BDACS Launches Won-Backed Stablecoin

• Quick Bites: Australia Eases Licensing Rules for Stablecoin Intermediaries.

• Yield of the Week: 240.13% APR on Drift

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HEADLINE

BDACS Launches Won-Backed Stablecoin

State of play: South Korean crypto custody firm BDACS has launched a proof-of-concept for KRW1, a stablecoin pegged to the Korean won and built on the Avalanche network.

• The stablecoin is fully backed by Korean won held at Woori Bank, one of South Korea's largest banks, with a real-time API integration ensuring transparency.

• The launch is a strategic move to position BDACS as a leader in a future regulated stablecoin market, which is currently a key focus for the South Korean government and central bank.

• While currently in a non-circulating proof-of-concept stage to comply with existing laws, the company plans to expand the stablecoin's use cases to include payments, remittances, and public-sector applications.

What’s Next: This launch will likely accelerate South Korea's stablecoin regulation and prompt more financial institutions to prepare for the new market. It also sharpens the debate between the central bank and non-bank entities over who should be allowed to issue digital currencies.

Why it Matters: The KRW1 launch is a major step towards a regulated, fiat-backed stablecoin market in South Korea. It provides a real-world model that could influence future legislation and demonstrates growing collaboration between traditional finance and the crypto industry.

Our Take: BDACS has cleverly used a proof-of-concept to gain a first-mover advantage while navigating legal uncertainties. This approach, backed by an institutional partner, sets a precedent for how other firms can position themselves for success in a regulated digital currency market.

QUICK BITES

• Curve Finance pitches Yield Basis.

• Coinbase now lets users lend USDC onchain.

• Circle launches USDC natively on Hyperliquid.

• Australia eases licensing rules for stablecoin intermediaries.

• Plasma blockchain to launch mainnet and XPL token next week.

• MoneyGram makes stablecoins the backbone of its next-generation app.

• Ripple, Franklin Templeton and DBS to offer token lending and trading.

• Google launches AI agent-to-agent payments protocol with stablecoin support.

• ORQO debuts in Abu Dhabi with $370M in AUM, sets sight on Ripple USD yield.

• Israel links wallets that received $1.5B in stablecoins to Iran’s revolutionary guard.

• JPMorgan says Circle faces 'intense' competition from Tether, Hyperliquid and fintech rivals.

YIELD OF THE WEEK

Silo Apostro USDC Core: 28.1% APR

• Silo's Apostro USDC Core is a vault where users deposit USDC with Apostro acts as the risk manager.

• The vault's funds are managed by third-party managers who allocate them to various listed markets, including stable assets like USDe, eUSDE, and others.

• The vault offers a APR of 11.7% and provides an additional reward of 16.4% in xSILO tokens.

Kamino Elemental USDC Turbo: 64.4% APY

• Kamino’s Elemental USDC Turbo is an automated and aggressive lending vault co-developed by Elemental and Voltr.

• The strategy dynamically allocates liquidity across various markets to optimize yield and mitigate against yield compression.

• The vault's funds are currently deployed in multiple markets, including those for Bitcoin, Huma, and various altcoins and memes, aiming for high returns while prioritizing capital security.

Drift Hyper JLP : 240.13% APR

• Drift’s Hyper JLP is an enhanced version of JLP that aims to maximize returns by replacing idle or legacy crypto assets (WETH, WBTC, SOL) with their yield-bearing equivalents (HYPE, cbBTC, dSOL).

• The vault is designed to generate yield with minimal added market risk. It eliminates the potential drag on profits caused by trader PnL (profit and loss) and converts stablecoins into a delta-neutral yield engine.

• There's a 15% performance fee on any profits generated for the user and a 2% annual management fee based on the time the user's funds are deposited. Fees are applied either monthly or upon withdrawal.

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