Dollar, Meet Won: Injective’s KRW1 Targets Korea’s Tokenized Assets

Blockchain network Injective and South Korean digital asset custodian BDACS have signed a memorandum of understanding to bring BDACS’s KRW1 stablecoin to tokenized asset markets on Injective. Under the Tuesday announcement, KRW1 would be the exclusive won-denominated settlement asset for real-world assets (RWAs) on the network, allowing institutions to trade and settle directly in Korean won without relying on US dollar stablecoins. BDACS says KRW1 is fully backed by Korean won reserves; minting and redemption would initially be limited to approved institutional partners and remain subject to regulatory approval.

The agreement comes as South Korea develops rules for won-backed stablecoins under its proposed Digital Asset Basic Act, which the government aims to finalize by the end of 2026. Lawmakers are still debating who can issue won-backed stablecoins. A July policy report by Hashed Open Research and the Solana Policy Institute called for greater flexibility in stablecoin issuance and interim licensing guidance while the legislation is being developed. The proposed law would establish a broader framework for digital assets, covering stablecoin issuance, disclosures and market rules.

Industry data cited by Cointelegraph showed that South Korea’s five largest crypto exchanges recorded net stablecoin outflows for 18 consecutive months through June. The data also showed that the stablecoin market remains overwhelmingly dollar-denominated, with US dollar-backed tokens accounting for more than 99% of total supply. South Korea’s efforts follow the passage of the US GENIUS Act, which established a federal regulatory framework for payment stablecoins, and the European Union’s Markets in Crypto-Assets Regulation (MiCA), which includes rules governing stablecoin issuers.

Injective is a layer-1 blockchain that has increasingly focused on tokenized assets. In August, its institutional services arm registered with the US Securities and Exchange Commission as a transfer agent, allowing it to maintain ownership records and facilitate securities transfers. Injective’s native token has a market capitalization of roughly $887 million, according to CoinMarketCap data.