KRW1 Stablecoin Expands Global Payments With Rain and Visa

South Korea’s won-backed KRW1 stablecoin is expanding into global payments through an integration with stablecoin payments infrastructure provider Rain, potentially extending the Korean won’s reach beyond its domestic market.

Rain is adding KRW1 to its global payments network, according to Avalanche, allowing businesses to spend tokenized Korean won through card-based payment infrastructure. The integration provides access to more than 175 million Visa merchant locations worldwide while keeping funds denominated in won.

KRW1 was introduced by South Korean digital asset custodian BDACS in collaboration with Woori Bank. The stablecoin maintains a 1:1 peg to the Korean won, with reserves held to support tokens in circulation.

Built on the Avalanche blockchain, KRW1 provides the digital asset infrastructure, while Rain supplies the payment layer connecting the stablecoin with card spending. This structure allows users to make international payments using KRW1 without first converting their funds into another currency.

Potential applications include overseas business expenses, payments for international students, cross-border corporate travel and contractor compensation. These use cases could provide easier access to won-denominated funds outside South Korea.

The development could also broaden the international utility of the Korean won. South Korea has nearly $3 trillion in broad money supply, but won-denominated financial activity remains largely concentrated within the domestic economy. Tokenized assets such as KRW1 could create another channel for expanding the currency’s use in global commerce.

Meanwhile, Avalanche is gaining traction in government digital infrastructure. The UAE Telecommunications and Digital Government Regulatory Authority recently announced plans to use Avalanche technology for UAE PASS, including its Digital Vault for accessing and sharing verified government documents.

The UAE system is expected to operate on a dedicated Avalanche Layer 1 rather than the public network, giving regulators greater control over permissions, privacy and network rules.

Despite the adoption developments, AVAX remains under pressure. The token has declined 7% over the past seven days and was trading at $7.42 at press time, down 0.35% over 24 hours.