KEY INSIGHTS
- Injective KRW1 will be used to settle won-denominated settlements for tokenized assets using BDACS after receiving regulatory approvals.
- BDACS limits the minting and redeeming of KRW1 tokens only to those institutions authorized in South Korea as the country formulates regulations for stablecoins.
- The five largest cryptocurrency exchanges in South Korea reported net stablecoin outflows of US$10.4 billion over an 18-month period.
Injective and the South Korean digital asset custodian BDACS have entered into a memorandum of understanding on October 20, 2026, to make KRW1 as the sole Korean won-denominated settlement asset for RWAs and tokenization activities on the Injective network.
The partnership comes as South Korea develops a regulatory framework for won-denominated stablecoins. The companies intend to integrate KRW1 into Injective’s on-chain markets while limiting the stablecoin’s minting and redemption to approved institutional partners.
BDACS CEO Harry Ryoo said demand in tokenized markets would remain anchored to dollar stablecoins without on-chain infrastructure for the Korean won. He said the companies would explore KRW1’s settlement role and expand their cooperation in stages as South Korea’s regulatory framework develops.
The agreement outlines a proposed use for KRW1 within Injective’s network. However, the supplied materials do not confirm that every planned trading and settlement function is already operational.
Injective KRW1 Deal Targets Dollar-Dominated Markets
U.S. dollar-backed stablecoins account for more than 98% of the stablecoin market’s total capitalization, according to data cited by the companies. That concentration provides the market context for Injective and BDACS’s effort to introduce a won-denominated settlement option.
Source: The Block
The companies also cited figures showing that South Korea’s five largest cryptocurrency exchanges recorded 18 consecutive months of net stablecoin outflows to overseas platforms. Those outflows totaled approximately $10.4 billion.
These figures highlight the capital movement cited in support of the partnership. However, the supplied information does not establish how much of those outflows the arrangement could redirect or how much settlement activity KRW1 may handle on Injective.
The proposed integration would allow participating institutions to use Korean won for transactions involving tokenized assets. This creates a potential settlement route within Injective’s real-world asset markets without requiring participants to convert their transactions through dollar-denominated stablecoins.
The arrangement is intended to connect institutional digital asset activity with a won-denominated settlement option. Minting and redemption remain restricted to approved institutional partners and subject to regulatory approval, placing limits on access while the companies pursue the initiative.
South Korea’s Stablecoin Rules Shape the Rollout
South Korea’s government and lawmakers are working on the Digital Asset Basic Act, proposed legislation intended to establish a regulatory framework for won-denominated stablecoins.
The bill was reportedly in the final stages of government consultation, with discussion in the national legislature scheduled for the following month. The supplied reporting does not confirm whether that timetable has changed or whether the legislation has been enacted.
Injective’s partnership with BDACS is consistent with the above policy development. The deal includes a case for the usage of the settlement in KRW1, although the intended activities are contingent upon regulatory approvals.
Separate reporting states that KRW1 is fully backed by Korean won held in escrow at Woori Bank. It also says reserves can be checked in real time through banking application programming interfaces (APIs), rather than relying solely on quarterly attestations.
KRW1’s proof-of-concept was completed on September 18, 2025, on the Avalanche network alongside Woori Bank. The token later expanded to Ethereum and BNB Chain, with cross-chain transfers using LayerZero’s Omnichain Fungible Token standard.
As of October 20, 2026, KRW1’s on-chain supply was reported at approximately 13.67 million. Earlier reporting cited holdings of about 142 million KRW equivalent, but the supplied information does not explain the relationship between the two figures.
Injective and BDACS Build on Institutional Infrastructure
BDACS provides digital asset infrastructure and custody services to institutional clients in South Korea. The firm reported more than 80 billion KRW in assets under custody during the first half of 2026.
Injective has also worked with South Korean companies on blockchain-based financial processes. POSCO International and LG CNS previously selected the network for the issuance, transfer, administration, and settlement of trade receivables linked to international commerce.
According to Injective, its Layer 1 network has processed more than $7.5 billion in real-world asset volume and recorded more than $1 billion in tokenized assets issued. These figures are company-reported metrics and were not independently verified in the supplied materials.
Injective described the KRW1 initiative as an initial step toward creating native Korean won markets on its network.
FAQs
What is the Injective and BDACS partnership?
The memorandum of understanding aims to establish KRW1 as the exclusive Korean won-denominated settlement asset for real-world assets and tokenization activity on Injective.
What is KRW1?
KRW1 is a Korean won-pegged stablecoin from BDACS. Separate reporting says it is fully backed by won held in escrow at Woori Bank.
Who can mint and redeem KRW1?
Minting and redemption under the announced arrangement are restricted to approved institutional partners and remain subject to regulatory approval.
