Injective Agrees to Settle Tokenized Assets With Korean Currency Backed 1:1
Key Facts
Injective announced on 20 October 2026 that it had signed a memorandum of understanding with BDACS to work on using its KRW1 stablecoin to settle tokenized real-world assets within the network's ecosystem. The partnership aims to enable trading and settlement of these assets directly in Korean won, without going through the dollar, according to Injective's announcement. BDACS said the currency is fully backed 1:1 by won reserves held at Woori Bank. The agreement involves using an existing currency, whose issuance BDACS announced in September 2025. Injective described the goal of the collaboration as enabling institutions to "trade and settle directly in Korean won, without going through the dollar."
KRW1 was initially issued on the Avalanche network, according to BDACS's launch statement. The company announced at the time that it had completed a proof-of-concept test combining cash deposits, stablecoin issuance and verification of transactions on the blockchain. As part of efforts to expand its use across networks, BDACS selected LayerZero's Omnichain Fungible Token standard to enhance the currency's interoperability. Planned transparency arrangements include monthly reserve attestations and independent semiannual audits, according to the currency's official website. The plan also includes a dashboard displaying reserves in real time, alongside the announced periodic verification procedures.
The memorandum of understanding restricts minting and redemption to approved institutional partners, subject to regulatory approval, according to Injective's announcement. The currency's official page describes current commercial access as available only to selected institutions that have passed know-your-customer and anti-money-laundering checks. On the asset side, issuance through the Injective Mint platform includes controls on holders, jurisdictions and transfers. These controls are applied at the protocol level, within the infrastructure the network offers for issuing tokenized assets. Providing context for its push toward local-currency settlement, Injective, citing research by Four Pillars, said cumulative net stablecoin transfers from major Korean exchanges to overseas platforms had reached about 14.9 trillion won.
The agreement comes amid Injective's activity in tokenizing financial and commercial assets, including a pilot in which POSCO International and LG CNS selected the network to tokenize real trade receivables. In another project, Injective said Pineapple Financial had moved residential mortgage records worth more than a billion dollars onto the network. The project involves creating digital records linked to the original loan files. The network clarified that the process does not repackage the loans into new mortgage-backed securities. On its institutional infrastructure, Injective announced that its institutional services subsidiary had become registered with the U.S. Securities and Exchange Commission as a transfer agent.
BDACS is also working on commercial uses for the currency beyond tokenized assets, according to its partnership announcements with payments companies and blockchain networks. Its planned collaboration with the Aptos Foundation includes linking payments to large-scale mobile gifting services. The plan also includes integrating blockchain wallet infrastructure into the commerce environment associated with the won-denominated stablecoin. In its partnership with Rain, BDACS handles KRW1 issuance and custody, according to the allocation of responsibilities announced by the company. Rain, in turn, manages Visa card issuance and infrastructure for settling transactions on the network, linking the currency arrangements to card services.
In foreign exchange, BDACS conducted a testnet demonstration swapping KRW1 for USDC to show the technical feasibility of settling foreign exchange on the blockchain. It also announced that KRW1 had gone live on Arc's mainnet as part of its expansion of the currency's infrastructure. The company said it plans to expand KRW1-based foreign exchange services using the capabilities of Circle's StableFX service. BDACS linked the pace of rolling out currency-related services to the development of Korea's legal and regulatory framework. It said these services would be made available "in phases in line with the development of Korea's legal and regulatory framework."