Injective has signed a memorandum of understanding (MOU) with South Korean digital asset custodian BDACS. Under the deal, Injective KRW1 will serve as the exclusive Korean won settlement asset for tokenized real-world assets (RWAs) on the Injective network.
KRW1 and the Korean Stablecoin Gap
KRW1 is issued by BDACS and fully backed 1:1 by Korean won held in reserve at a major South Korean bank. Minting and redemption are initially limited to approved institutional partners and remain subject to regulatory approval.
The timing of this deal is deliberate. Korea’s five major crypto exchanges have recorded 18 consecutive months of net stablecoin outflows, roughly 14.9 trillion won (~$10.4 billion), to offshore platforms since January 2025. By bringing a won-denominated settlement layer on-chain, the Injective–BDACS partnership aims to retain that capital domestically.
South Korea’s push to tokenize stocks, bonds, and funds under an STO law expected in February 2027 gives the infrastructure even more urgency. The partnership addresses a friction point that has long slowed Korean institutional participation in on-chain markets. Most tokenized assets settle in USD stablecoins.
Injective has already built significant RWA momentum. The network has processed more than $7.5 billion in RWA volume and hosts over $1 billion in tokenized assets. That traction drew early institutional confidence, in July 2026, POSCO International and LG CNS selected Injective to issue, transfer, administer, and settle live trade receivables from international commerce. The Bank of Korea has separately advocated for domestic banks to anchor that market. South Korea’s finalized Digital Asset Bill draft already signals regulators’ intent to move quickly.
Eric Chen, Co-founder of Injective, said: “Bringing a Korean won settlement layer onchain is an important step for tokenized finance in Korea. Together with BDACS, we are building the foundation for Korean won markets onchain, from tokenized RWAs to institutional settlement.”
Harry Ryoo, CEO of BDACS, added: “Without onchain won infrastructure, demand in tokenized markets will remain anchored to dollar stablecoins. Through our partnership with Injective, we will explore how KRW1 can serve as a won settlement asset for tokenized markets, and we will expand our collaboration step by step as Korea’s regulatory framework develops.”
INJ’s Regulatory and Institutional Backdrop
Injective’s credibility with institutional partners received a major boost earlier this year. INJ rallied 9% after Injective secured a Transfer Agent registration from the US SEC, a milestone that directly enables compliant RWA issuance. That regulatory win, combined with the POSCO and LG CNS integrations, underpins why BDACS chose Injective as its settlement partner.
Investor attention is also growing. Canary Capital’s amended staked Injective ETF filing with the SEC signals that institutional exposure to INJ is expanding beyond spot custody. Meanwhile, Injective’s CypherOS native privacy upgrade after mainnet went live adds a compliance-friendly privacy layer that institutional partners increasingly require.
BDACS itself is no stranger to institutional crypto infrastructure. The custodian previously partnered with Ripple on XRP custody services, a move that cemented its standing in Korea’s regulated digital asset space. Ripple’s major win as the South Korean giant launched XRP custody via BDACS highlighted BDACS’s appetite for cross-chain institutional integrations.
This is still an early-stage MOU. Implementation depends on regulatory clearance, institutional onboarding, and measurable KRW1-settled volumes. But for Injective, the strategic logic is clear, local-currency settlement rails reduce friction, keep Korean capital onshore, and expand the addressable market for tokenized assets.
