Injective (INJ) has teamed up with BDACS to introduce KRW1, a Korean won-pegged stablecoin, as the primary settlement asset for real-world assets (RWA) and tokenization activities on the Injective network. This partnership aims to facilitate direct trading and settlement of tokenized assets in Korean won, bypassing the need for dollar-denominated stablecoins. The minting and redemption of KRW1 will be restricted to approved institutional partners and will require regulatory approval.
Harry Ryoo, CEO of BDACS, emphasized the importance of onchain won infrastructure to reduce reliance on dollar stablecoins. He noted that the collaboration with Injective will explore KRW1's role in tokenized markets, with plans to expand as Korea's regulatory framework evolves.
The stablecoin market is currently dominated by USD-backed assets, which make up over 98% of the total market capitalization. South Korea's top five crypto exchanges have seen 18 consecutive months of net stablecoin outflows, totaling about $10.4 billion. To address this, the South Korean government is advancing the Digital Asset Basic Act, which would provide a framework for won-denominated stablecoins.
BDACS, a registered virtual asset service provider, manages over 80 billion KRW in assets under custody. Injective, a Layer 1 network, has processed more than $7.5 billion in RWA volume and issued over $1 billion in tokenized assets. The partnership marks the first step toward bringing native Korean won markets to Injective, with further developments expected as more institutions bring their assets onchain.