Bridging Regulation and Technology: Introducing the KRW Stablecoin Architecture Proposal

In the global financial market, stablecoins are rapidly evolving beyond mere mediums for crypto trading. They are becoming the "next-generation payment rails" powering cross-border remittances and B2B settlements in the real economy.

However, despite boasting world-class IT infrastructure and digital finance capabilities, South Korea faces a critical gap: the absence of an institutional Korean Won (KRW) stablecoin. This void risks isolating the domestic digital economy and accelerating "Digital Dollarization": a growing dependence on USD-backed stablecoins like USDT and USDC for onchain and cross-border transactions.

To address this challenge and pave the way forward, the Kaia DLT Foundation, in collaboration with leading blockchain technology experts Lambda256, AhnLab Blockchain Company, and OpenAsset, has jointly published the "KRW Stablecoin Architecture Proposal."

Shifting the Narrative from "If" to "How"

Current discussions surrounding stablecoins in South Korea often stall at macro-level regulatory debates: Should we introduce them? Who gets to issue them?

This proposal is designed to shift that focus. Rather than debating the "if," it provides a concrete, actionable blueprint on how to safely implement a KRW stablecoin. It addresses the core risks that regulators care about most; financial stability, anti-money laundering (AML), and consumer protection, and demonstrates how these can be managed through robust technical systems and operational governance. In short, it translates the "What" of regulatory principles into the "How" of technical execution.

Kaia: The Premier Infrastructure Layer for Asia's Stablecoins

As Asia's leading Web3 and blockchain infrastructure layer, Kaia serves as a vital bridge between global liquidity and local regulatory environments. Fostering a secure, scalable stablecoin ecosystem is at the very core of our vision.

With the release of this proposal, Kaia is going beyond just providing a network; we are actively advancing stablecoin policy and technical standards in South Korea. By building a trusted, compliant KRW stablecoin on the Kaia infrastructure, we are laying the groundwork for a powerful hub that will connect cross-border payments and digital finance across all of Asia.

What's Inside the Proposal?

The attached comprehensive report dives deep into the following core areas:

• Technical Implementation of Regulatory Principles: How to embed requirements like 1:1 redemption guarantees, transparent reserve reconciliation, and AML/KYT compliance directly into smart contracts and system workflows.
• Secure Architecture & Governance: Designing systems that eliminate Single Points of Failure (SPOF) and prevent authorization abuse using Multi-Party Computation (MPC)/Multi-sig, Role-Based Access Control (RBAC), and emergency operational modes.
• Real-World Economic Use Cases: Practical scenarios where a KRW stablecoin creates tangible value, including B2B settlements, platform merchant payouts, and cross-border remittances.

Download the Full Report

Discover the future of digital finance and the technical architecture required to support it safely. Read the full proposal below. (Please note: This content is written in Korean.)

Download the KRW Stablecoin Architecture Proposal (PDF) Here:

Download the KRW Stablecoin Architecture Proposal Summary (PDF) Here:

We hope this document serves as a valuable baseline for establishing the safety, regulatory compliance, and industrial utility of a Korean Won stablecoin. Kaia will continue to lead the charge in building a transparent and innovative digital asset ecosystem.