BDACS and Injective Collaborate on Korean Won-Based Stablecoin for Digital Asset Settlement
A new partnership between Injective and BDACS, a South Korean firm, will introduce the KRW1 stablecoin for settling tokenized assets in Korean won.
The blockchain platform Injective has signed a memorandum of understanding with BDACS, a digital asset custodian based in South Korea, aimed at introducing a stablecoin backed by the Korean won to markets dealing with tokenized assets. This development could enable institutional players to complete transactions without depending on stablecoins pegged to the US dollar.
Based on an announcement made on Tuesday, the KRW1 stablecoin from BDACS would function as the sole settlement asset denominated in Korean won for real-world assets (RWAs) operating on the Injective network. This would give institutions the capability to conduct trades and settle tokenized asset transactions using Korean won directly.
According to BDACS, KRW1 maintains full backing through Korean won reserves. The processes for minting and redemption would be restricted initially to institutional partners who have received approval, pending regulatory clearance.
This partnership emerges during a period when South Korea is crafting regulations for stablecoins backed by the won through its Digital Asset Basic Act proposal, which government officials plan to complete by the conclusion of 2026. During this transition period, the nation's top five cryptocurrency trading platforms experienced continuous net outflows of stablecoins over 18 straight months ending in June, based on industry figures referenced by Cointelegraph.
As a layer-1 blockchain platform, Injective has progressively concentrated its efforts on tokenized assets. During August, the company's institutional services division completed registration with the US Securities and Exchange Commission in the capacity of a transfer agent, providing it authorization to keep ownership records and enable the transfer of securities. Data from CoinMarketCap indicates that Injective's native token maintains a market capitalization of approximately $887 million.
South Korea moves toward won-backed stablecoin regulation
The question of who should be permitted to issue stablecoins backed by the Korean won remains under discussion in South Korea as legislators continue their work on the Digital Asset Basic Act.
In July, a policy report published by Hashed Open Research in collaboration with the Solana Policy Institute advocated for expanded flexibility regarding stablecoin issuance along with interim licensing guidance during the legislative development phase. The legislation under consideration would create a comprehensive framework addressing digital assets, encompassing stablecoin issuance protocols, disclosure requirements, and market regulations.
The regulatory initiatives underway in South Korea come in the wake of the United States passing the GENIUS Act, which created a federal regulatory structure for payment stablecoins, as well as the European Union's Markets in Crypto-Assets Regulation (MiCA), which incorporates provisions governing entities that issue stablecoins.
According to industry data, the stablecoin marketplace continues to be dominated overwhelmingly by dollar-denominated options, with stablecoin tokens backed by US dollars representing over 99% of the aggregate supply.