Partnership to Enable Won-Denominated Settlements

Injective, a layer-1 blockchain protocol, has entered into a memorandum of understanding with BDACS, a South Korean digital asset custodian, to bring KRW1 to its tokenized asset markets. Under the agreement, BDACS’s KRW1 stablecoin will serve as the sole Korean won-denominated settlement asset for real-world assets traded on the Injective network.

Institutions will be able to trade and settle tokenized assets directly in won rather than routing transactions through US dollar-backed stablecoins. BDACS has confirmed that KRW1 is fully backed by reserves held in Korean won. Minting and redemption of the token will initially be open only to selected institutional clients, subject to regulatory approval before direct access is granted.

The arrangement targets approved institutional partners and does not yet represent a live market, but it is positioned to streamline settlement processes for domestic firms using the Injective platform.

South Korea’s Regulatory Developments

South Korea is advancing a Digital Asset Basic Act that lawmakers aim to finalize by the end of 2026. The legislation is expected to establish the legal framework for digital asset issuance and operations, including rules for won-backed stablecoins.

During the policy discussions, the five largest crypto exchanges in the country recorded net stablecoin outflows for 18 consecutive months through June. Industry researchers note the transfers totaled roughly 14.9 trillion won, or about 10.4 billion USD, though the data reflects movements between exchanges and does not confirm permanent capital flight.

The trend aligns with South Korea’s efforts to create a regulatory environment that mirrors international standards, such as the US GENIUS Act and the European Union’s MiCA framework. The stablecoin market overall remains dominated by dollar-denominated tokens, which account for more than 99 percent of total supply.

Injective’s Institutional Expansion

Injective has been expanding its institutional services in recent months. In August, the company’s institutional division registered with the US Securities and Exchange Commission as a transfer agent, enabling it to maintain ownership records and facilitate the transfer of securities.

Injective’s native INJ token currently holds a market capitalization of approximately 887 million USD. The partnership with BDACS builds on this infrastructure, which already includes work with Korean financial institutions to support tokenized trade receivables.

Implications for Institutional Adoption

The initiative addresses a practical need in South Korea’s digital asset ecosystem, where reliance on US dollar stablecoins has created settlement frictions for local participants. By enabling direct KRW settlement, the collaboration could reduce cross-currency steps and better align with domestic cash management practices.

BDACS, focused on secure custody for institutional clients, will handle the KRW1 reserves and compliance elements. The partnership reflects broader industry momentum toward tokenized real-world assets, including Injective’s selection by companies such as POSCO International and LG CNS to issue, transfer, administer, and settle trade receivables.

While regulatory approval remains a prerequisite for full rollout, the agreement positions KRW1 as a targeted solution for institutional tokenized asset markets. South Korea’s evolving framework, expected to clarify issuer eligibility and operational standards, will ultimately determine the pace and scope of adoption.