South Korean Stablecoin, KRWb, to Launch in Q1’19

Feb 1, Update: KRWb has Announced the Launch and First Exchange Listings here:

https://medium.com/krwb/announcing-the-launch-of-krwb-the-worlds-first-1-1-korean-won-backed-stablecoin-e062dde25510

KRWb Smart Contract Deployed — Beta Live on AirSwap

2019.01.18

Greeting from the KRWb team,

We’re excited to announce the upcoming launch of KRWb, a 1:1 Korean Won backed stablecoin. The team has completed deployment of the initial smart contract and will proceed with a live beta period over the next few weeks on AirSwap, a decentralized exchange, before proceeding with the anticipated Korean and Global exchange listings.

The KRWb smart contract can be viewed here: etherscan.io/token/0xf9fd7a89bfb8a07a225080236e5ca570ee2a76a1

What are Stablecoins?

For those unfamiliar with stablecoins, they can be understood as a specific type of cryptocurrency designed to minimize the effects of price volatility. Usually the price of a stablecoin is “pegged” to a safely stored, underlying asset that gives value to the token. There are many ways to encourage price stability, with the three most common pegging concepts currently being fiat backed, asset backed and algorithmic driven mechanics. KRWb will be a centralized project, leveraging the South Korean Won (KRW) as means of fiat backing for stability.

KRWb is Collateralized 1:1 with South Korean Won

The mechanics of how KRWb works can be expressed as simply described in the following way. 1 KRWb token will be created for each 1 KRW deposit into the KRWb treasury. This “digital KRW” will be created as an ERC-20 token that can be easily transferred globally or held by anyone who has access to an ERC-20 compatible wallet. The KRWb team will not put any KRWb tokens into circulation unless they are, at minimum, backed 1:1 by fiat KRW inside of the company’s Korean treasury reserves.

KRWb Workflow Overview

The KRWb team will be responsible for managing the minting and burning of KRWb, through an Ethereum smart contract based process that requires a multi-signature checkpoint and a 3rd party auditor to get completed. At launch, there will be a limited number of “KRWb Issuance Partners” who will have the responsibility of distributing KRWb to the market and supporting liquidity. Due to the select nature of KRWb Issuance Partners, these parties must pass rigorous KYC/AML checks and be able to continually meet a high quality customer service standard to offer liquidity for the KRWb community.

Benefits of KRWb

  1. A stable store of value that can be denominated in KRW
  2. Global accessibility of value transfers in and out of Korea
  3. Alternatives to KRW Foreign Exchange rate hedging
  4. Over time, reduced variance of cryptocurrency prices within Korea vs. global markets

KRWb Availability and Liquidity Options

Although KRWb is backed by KRW, the fiat currency of South Korea, the team aims to make KRWb available to the global market through multiple distribution channels. Users will have world-wide access to KRWb, including the ability to buy KRWb even when the user has no ability to obtain fiat KRW or Korean-compatible payment methods.

The team plans to list KRWb on Korean cryptocurrency exchanges, global cryptocurrency exchanges, decentralized exchanges (DEXs) and also encourage liquidity support via OTC desk partners and more. Specific KRWb listing locations and timelines will be announced over the course of Q1’19. Overtime KRWb is anticipated to be buyable with Bitcoin (BTC), Ether (ETH), KRW, USD, TUSD and more.

Limited KRWb tokens will be available during the beta testing period. The tokens can be found on either AirSwap via the KRWb Space or through direct OTC purchases in larger quantities via KRWb Issuance Partners.

Those interested in using KRWb or in collaborating with the KRWb team in any capacity can contact us via hello@krwb.io.


This is a continuation article of the initial development and fund raise announcement posted back in October: https://medium.com/block-by-block-capital/korean-won-backed-stable-coin-krwb-in-development-by-bxb-capital-cbe1833f77c3