Korean won settlement for tokenized assets is the goal of a memorandum of understanding between blockchain network Injective and South Korean digital asset custodian BDACS. Under the planned arrangement, BDACS’s KRW1 stablecoin would let institutions trade and settle real-world assets on Injective directly in won rather than relying on US dollar stablecoins.
Key Takeaways
- KRW1 would become the exclusive won-denominated settlement asset for real-world assets on Injective.
- Initial minting and redemption would be restricted to approved institutional partners, subject to regulatory approval.
- The agreement comes while South Korea is developing legislation governing won-backed stablecoins.
Table of Contents
- Korean won settlement remains a planned service
- Issuance rules are still under debate
- Injective’s institutional registration
- Conclusion
Korean won settlement remains a planned service
The arrangement, announced Tuesday, sets out a proposed settlement role for KRW1 rather than a completed rollout. BDACS says the stablecoin is fully backed by Korean won reserves.
The planned institutional access would initially cover minting and redemption by approved partners, subject to regulatory approval. The agreement therefore outlines how a won-denominated settlement asset could be used on Injective, while leaving its introduction dependent on regulatory clearance.
Issuance rules are still under debate
South Korean lawmakers are still considering who should be allowed to issue won-backed stablecoins. The proposed Digital Asset Basic Act would establish rules for stablecoin issuance, disclosures and digital asset markets, and the government aims to finalize it by the end of 2026.
A July policy report from Hashed Open Research and the Solana Policy Institute urged greater flexibility in stablecoin issuance and interim licensing guidance while lawmakers develop the legislation.
South Korea’s work follows the passage of the US GENIUS Act, which established a federal framework for payment stablecoins, and the European Union’s Markets in Crypto-Assets Regulation, which includes requirements for stablecoin issuers.
Injective’s institutional registration
For Injective, a layer-1 blockchain increasingly focused on tokenized assets, the agreement follows another institutional development. In August, its institutional services arm registered with the US Securities and Exchange Commission as a transfer agent, allowing it to maintain ownership records and facilitate securities transfers.
Conclusion
The memorandum outlines a route to won-based institutional settlement on Injective, but it is not a launch announcement. Regulatory approval remains a condition for the planned initial minting and redemption access.
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