Injective and BDACS plan won-backed stablecoin for tokenized assets

Injective and BDACS sign agreement on Korean won settlement

Blockchain network Injective has signed a memorandum of understanding with BDACS, a South Korean digital asset custodian, to bring a won-backed stablecoin to Injective's tokenized asset markets. A stablecoin is a digital token designed to hold a steady value, usually tied to a national currency.

Under the plan, BDACS's KRW1 token would be the only won-denominated settlement asset for real-world assets (RWAs) on Injective. Real-world assets are tokens that represent things like securities or other traditional assets. The setup would let institutions trade and settle these tokenized assets directly in Korean won instead of relying on US dollar stablecoins.

What the announcement says about KRW1

• BDACS says KRW1 is fully backed by Korean won reserves.


• Minting and redemption would at first be limited to approved institutional partners.


• Both activities are subject to regulatory approval.


• The agreement was announced on a Tuesday, according to the announcement.

South Korea's stablecoin rules are still being written

The deal comes as South Korea develops rules for won-backed stablecoins under a proposed Digital Asset Basic Act. The government aims to finalize the law by the end of 2026. Lawmakers are still debating who would be allowed to issue won-backed stablecoins.

The proposed law would set out a broader framework for digital assets, covering stablecoin issuance, disclosures and market rules.

Policy groups push for flexible issuance rules

A July policy report by Hashed Open Research and the Solana Policy Institute called for more flexibility in stablecoin issuance and for interim licensing guidance while the legislation is still being drafted.

South Korea's work follows the US GENIUS Act, which created a federal regulatory framework for payment stablecoins, and the European Union's Markets in Crypto-Assets Regulation (MiCA), which includes rules for stablecoin issuers.

Korean exchanges saw 18 months of stablecoin outflows

Industry data cited by Cointelegraph shows the country's five largest crypto exchanges recorded net stablecoin outflows for 18 consecutive months through June. The same data shows the stablecoin market remains heavily dollar-based, with US dollar-backed tokens making up more than 99% of total supply.

Background on Injective

Injective is a layer-1 blockchain, meaning a base network that runs its own transactions. The network has increasingly focused on tokenized assets. In August, its institutional services arm registered with the US Securities and Exchange Commission as a transfer agent, which allows it to keep ownership records and help transfer securities.

Injective's native token has a market capitalization of roughly $887 million, according to CoinMarketCap data.

What is confirmed

Injective and BDACS have entered a memorandum of understanding. BDACS's KRW1 is described as the planned exclusive won-denominated settlement asset for real-world assets on Injective. BDACS says KRW1 is fully backed by Korean won reserves, and that minting and redemption would initially be limited to approved institutional partners and require regulatory approval.

South Korea is working on the Digital Asset Basic Act and aims to finalize it by the end of 2026. Injective's institutional services arm registered with the SEC as a transfer agent in August.

What is still unclear

It is not known when KRW1 would launch, which regulators would approve it, or which institutions would take part. The source material does not say whether the Digital Asset Basic Act will be passed on the government's stated timeline. The claim that KRW1 is fully backed by won reserves comes from BDACS and is not independently verified in the supplied material.

Why this matters

Most stablecoin supply is tied to the US dollar, according to industry data in the source. A won-backed settlement option on Injective would let institutions handle tokenized asset trades in Korean currency, which may reduce their reliance on dollar stablecoins. South Korea's rules for issuing such tokens are still being decided.

Sources

• Cointelegraph