Injective, a blockchain network, has teamed up with South Korean digital asset custodian BDACS to introduce a won-backed stablecoin for tokenized asset markets. The partnership aims to reduce reliance on US dollar stablecoins by offering institutions a way to settle transactions directly in Korean won. BDACS's KRW1 stablecoin will serve as the exclusive settlement asset for real-world assets (RWAs) on Injective, with minting and redemption initially limited to approved institutional partners pending regulatory approval.
The agreement comes as South Korea works on regulations for won-backed stablecoins under its proposed Digital Asset Basic Act, expected to be finalized by the end of 2026. Meanwhile, the country's five largest crypto exchanges have seen net stablecoin outflows for 18 consecutive months through June, according to industry data. Injective, a layer-1 blockchain, has been focusing on tokenized assets and recently registered its institutional services arm with the US Securities and Exchange Commission as a transfer agent.
South Korea is still debating who can issue won-backed stablecoins as lawmakers finalize the Digital Asset Basic Act. A July policy report by Hashed Open Research and the Solana Policy Institute called for greater flexibility in stablecoin issuance and interim licensing guidance. The proposed law would establish a broader framework for digital assets, including stablecoin issuance, disclosures, and market rules. Industry data shows that the stablecoin market remains overwhelmingly dollar-denominated, with US dollar-backed tokens accounting for more than 99% of the total supply.