KRW1 Stablecoin Goes Multichain with LayerZero

BDACS, South Korea's digital asset custodian, has migrated its won-backed KRW1 stablecoin to LayerZero's Omnichain Fungible Token standard. This move aims to make the token more flexible across various blockchains.

The KRW1 token was initially deployed on multiple networks, including Ethereum, Avalanche, and Circle's Arc, but having separate copies of the asset on each network created friction for customers transferring assets between networks. By implementing LayerZero's OFT technology, BDACS hopes to replace this model with a single asset supply across compatible networks.

LayerZero claims that its OFT standard is used by 87% of cross-chain transfer volume, with over $280 billion in lifetime transfers on 170+ blockchains. USDT0 follows a similar architecture for moving dollar liquidity between supported networks without independent pools of bridge liquidity.

The integration was part of KRW1's overall multichain strategy, which includes partnerships with Woori Bank and Circle. BDACS CEO Harry Ryoo stated that the value of a Korean won stablecoin is based on its global scalability, and the OFT implementation gives KRW1 the technical foundation to be more flexible across blockchains.