Key Highlights
- Rain has added support for KRW1, a Korean won-backed stablecoin issued by BDACS.
- Businesses can use KRW1 to power stablecoin card programs accepted at more than 175 million Visa merchant locations.
- Rain will manage card issuance, program operations, and settlement with Visa, while merchants continue processing transactions as standard Visa payments.
Rain, a fintech platform focused on stablecoin payment infrastructure, announced on September 15 that it is adding support for KRW1, a Korean won-backed stablecoin issued by BDACS.
According to the announcement, businesses will be able to use KRW1 to operate won-denominated stablecoin card programs that function at locations where Visa is accepted. Cardholders will be able to spend from KRW1-backed balances at more than 175 million Visa merchant locations. Merchants will process the transactions as standard Visa payments, with Rain handling settlement with Visa.
Partnership structure and operations
Stablecoin card programs that use KRW1 will operate on the same infrastructure Rain uses for its more than 130 existing programs. The setup includes daily settlement. Rain will handle card issuance, program management and settlement infrastructure. BDACS will continue to issue and custody KRW1. The stablecoin is fully backed by Korean won reserves held at Woori Bank.
The arrangement allows businesses to offer cards denominated in won for uses that include travel and study abroad, corporate travel and expense programs, and payouts to creators and contractors.
KRW1 was initially launched on Avalanche by BDACS in partnership with Woori Bank. Rain is integrating the token into its global payments systems. Avalanche stated that the Korean won represents nearly $3 trillion in broad money and has historically remained largely within Korea’s borders.
Prior expansion efforts
In May, BDACS signed a strategic memorandum of understanding with the Aptos Foundation. That agreement focused on building an on-chain commerce environment centered on KRW1 and integrating the stablecoin with the Aptos blockchain.
The collaboration was presented as part of a multi-chain approach intended to expand accessibility, liquidity and utility. It marked KRW1’s first integration with a non-EVM network using the Aptos Move ecosystem.
KRW1 places a representation of the won on blockchain networks, and the Rain integration connects balances denominated in the token to the Visa acceptance network.
What users need to know
When a card linked to a KRW1 balance is used, the merchant receives a conventional Visa transaction. Settlement between Rain and Visa occurs in the background. The process is designed to allow the merchant to be paid in the ordinary course of Visa processing while the underlying balance remains denominated in the won-backed stablecoin.
The combination of BDACS issuance and custody, reserves at Woori Bank, Avalanche-based issuance infrastructure, and Rain’s card and settlement systems forms the operational framework described in the announcement. No financial terms of the Rain-BDACS arrangement were disclosed. Specific timelines for the availability of individual card programs were not detailed in the public statements.
Also Read: Ripple Partnership Brings XRP Branding to Louisville Basketball
