South Korea’s BxB Inc. Begins “First” Stablecoin ‘KRWb’ Launch to be Backed by the Korean Won
As regulations continue to evolve in South Korea, their decision to innovate has brought with them a new victory. Fintech firm BxB Inc. has officially launched the “first” stablecoin, which is directly pegged by the Korean won. A press release was published on January 29th.
On Airswap, a DEX platform, investors were invited to participate in the beta soft launch of the coin. Soon after, the tokens went live on the exchange this month, according to co-founder Alex Friedberg. The KRWb coin is supposedly the first stablecoin that South Korea has created and supported with their own fiat currency, which is at a 1:1 ratio.
Due to the management of mining and burning of the token, BxB Inc. was able to guarantee liquidity with a smart contract. The smart contract implemented a multi-signature checkpoint and a third-party auditor to maintain the balance required.
Serving as collateral for the starting balance, BxB Inc. generated a total of 400 million won ($360,000) with an equal value in the KRWb tokens. The Singapore-based BxB Capital PTE Ltd. firm also invested in the collateral. The only necessity for users that want to purchase or use the token will be that they use an ERC-20 compatible service. Transactions with the KRWb can be performed without needing to access the won.
Presently, reports indicate that BxB In. is still in talks with South Korea, along with other global exchanges for what comes next. Additional listings from this platform are planned to be announced during Q1 2019, though the KRWb is already listed on three separate exchanges, based on a statement received by CoinTelegraph.
Most of the well-known stablecoins in the industry are pegged to the U.S. dollar, but their pursuance of this type of coin has inspired other countries to do the same. Bitspark, a money transfer platform in Hong Kong, recently launched a stablecoin in the country that is pegged to the Hong Kong dollar.