Injective partners with BDACS to launch KRW1 won stablecoin for tokenized asset settlement

Injective, a layer-1 blockchain protocol, has signed a memorandum of understanding with BDACS, a South Korean digital asset custodian, to introduce a won-backed stablecoin for its tokenized asset markets. The collaboration aims to provide institutions with the ability to settle tokenized real-world asset transactions in South Korean won, reducing dependence on US dollar stablecoins.

KRW1 stablecoin to power won-denominated settlements

BDACS’s KRW1 stablecoin will serve as the exclusive Korean won-denominated settlement asset for real-world assets (RWAs) traded on the Injective blockchain. This arrangement would allow approved institutional partners to trade and settle tokenized assets in Korean won, streamlining settlement processes for domestic firms.

BDACS, a South Korean company focused on asset custody, stated that KRW1 is fully backed by reserves held in Korean won. The minting and redemption of the stablecoin will be open only to selected institutional clients, in line with regulatory requirements. The company indicated that the service remains subject to regulatory approval before institutions can directly access KRW1.

BDACS emphasized that the KRW1 stablecoin is entirely supported by Korean won reserves, offering an on-chain method for institutions to settle tokenized asset trades in the local currency.

The initiative comes amid rising demand for local currency settlement solutions in South Korea’s evolving digital asset sector. Existing markets have been dominated by US dollar-backed stablecoins, creating a potential gap for domestic currency alternatives.

Regulatory changes on the horizon in South Korea

South Korea’s government continues to shape new rules for issuing won-backed stablecoins as part of its proposed Digital Asset Basic Act. The law, which authorities aim to finalize by the end of 2026, will define the legal framework for digital asset issuance and operations, including who may create and manage stablecoins in the country.

During the ongoing policy discussions, the five largest crypto exchanges in South Korea collectively experienced net stablecoin outflows for 18 consecutive months through June, according to data from industry researchers. This trend signals both shifting demand and evolving investor preferences in the market.

South Korea’s debate over stablecoin regulation mirrors the international push for oversight. The United States has advanced regulatory clarity through the GENIUS Act, which introduced a federal framework for payment stablecoins. Similarly, the European Union’s Markets in Crypto-Assets Regulation (MiCA) established ground rules for stablecoin issuers within its member states.

Despite recent developments, the global stablecoin economy remains heavily dominated by US dollar-backed tokens. Recent industry data places dollar-denominated stablecoins at over 99% of the total supply, highlighting the limited presence of alternatives linked to other fiat currencies.

Mini dictionary: BDACS, short for Blockchain Digital Asset Custody Service, is a regulated digital asset custodian in South Korea that provides secure storage and management solutions for institutional clients investing in cryptocurrencies and tokenized assets.

Injective’s growing presence in tokenized asset markets

Injective has increased its focus on enabling tokenized real-world asset trading. In August, the company’s institutional division registered with the US Securities and Exchange Commission as a transfer agent, allowing it to manage ownership records and facilitate the transfer of securities. According to CoinMarketCap, Injective’s native INJ token has a market capitalization of about $887 million.

Together, BDACS and Injective intend to expand the use of the KRW1 stablecoin within tokenized asset markets. The partnership reflects broader efforts in South Korea to establish an ecosystem supporting local currency-backed digital assets, while keeping pace with international regulatory frameworks.