Injective has signed a memorandum of understanding with South Korean digital asset custodian BDACS to integrate the KRW1 stablecoin into its tokenized real-world asset markets. The agreement designates KRW1 as the exclusive won-denominated settlement asset for RWAs on Injective, enabling institutional participants to trade and settle directly in Korean won without relying on US dollar stablecoins. BDACS states that KRW1 is fully backed by Korean won reserves, though minting and redemption will initially be restricted to approved institutional partners pending regulatory approval.
This development occurs as South Korea advances its Digital Asset Basic Act, which aims to finalize rules for won-backed stablecoins by the end of 2026. Currently, the country’s five largest crypto exchanges have recorded net stablecoin outflows for 18 consecutive months through June, highlighting liquidity challenges in the local market. Injective, a layer-1 blockchain focused on tokenized assets, recently registered its institutional services arm with the US Securities and Exchange Commission as a transfer agent in August, facilitating securities transfers and ownership records.
The broader context includes global regulatory shifts, such as the passage of the US GENIUS Act and the EU’s Markets in Crypto-Assets Regulation (MiCA), which set frameworks for stablecoin issuers. Industry data indicates that US dollar-backed tokens still account for more than 99% of the total stablecoin supply, underscoring the significance of introducing a compliant local currency alternative. A July policy report by Hashed Open Research and the Solana Policy Institute recommended interim licensing guidance to support stablecoin issuance flexibility while legislation is being debated.
The partnership between Injective and BDACS represents a strategic attempt to localize settlement infrastructure for tokenized assets in South Korea, reducing dependency on dominant US dollar stablecoins. By positioning KRW1 as the exclusive settlement asset for real-world assets, Injective seeks to capture institutional demand for compliant, local-currency rails within a jurisdiction where regulatory clarity is still evolving. This move aligns with Injective’s recent SEC registration, suggesting a coordinated effort to bridge traditional finance compliance standards with blockchain-native asset markets.
However, the initiative faces significant hurdles tied to South Korea’s ongoing legislative process. The restriction of KRW1 minting to approved institutions pending regulatory approval limits immediate market accessibility and adoption speed. Furthermore, the persistent net outflows from major Korean exchanges indicate underlying liquidity pressures or capital flight concerns that this stablecoin integration must address to gain traction. Success depends heavily on whether the Digital Asset Basic Act provides sufficient legal certainty for won-backed stablecoins by late 2026, allowing BDACS to expand beyond its initial institutional pilot phase.
