Injective and South Korean digital-asset custodian BDACS have signed a memorandum of understanding to introduce KRW1, a stablecoin backed by the Korean won, to Injective’s tokenized-asset markets. The proposed arrangement would give institutions a way to settle transactions involving tokenized real-world assets directly in won rather than using stablecoins linked to the US dollar.
KRW1 would support institutional settlement
Under the agreement, KRW1 would become Injective’s exclusive won-denominated settlement asset for real-world assets, commonly referred to as RWAs. These are assets represented on a blockchain in tokenized form, potentially enabling digital trading and record-keeping for assets that exist outside the crypto market.
BDACS says each KRW1 token would be fully backed by reserves of Korean won. Initially, only approved institutional partners would be able to mint or redeem the stablecoin, and those activities would require regulatory approval.
The planned use of KRW1 comes as South Korea works on rules for stablecoins denominated in the local currency. The government aims to finalize its proposed Digital Asset Basic Act by the end of 2026. The legislation is expected to address stablecoin issuance, disclosures and broader digital-asset market rules, although lawmakers are still debating which entities should be allowed to issue won-backed tokens.
According to Cointelegraph, the country’s five largest crypto exchanges recorded net stablecoin outflows for 18 consecutive months through June, based on industry data cited in its report.
Injective’s tokenization focus
Injective is a layer-1 blockchain that has increasingly targeted tokenized assets and institutional services. In August, its institutional services arm registered with the US Securities and Exchange Commission as a transfer agent. That registration allows it to maintain ownership records and facilitate securities transfers.
The proposed KRW1 settlement system would connect that tokenization focus with a local-currency payment instrument. The agreement does not itself establish that the stablecoin can be issued or used commercially; minting and redemption remain subject to regulatory approval.
South Korea’s policy debate is taking place alongside international efforts to regulate stablecoins. A July report from Hashed Open Research and the Solana Policy Institute called for more flexibility around stablecoin issuance and interim licensing guidance while the Digital Asset Basic Act is being developed. The source material also notes that the US GENIUS Act created a federal framework for payment stablecoins, while the European Union’s Markets in Crypto-Assets Regulation includes rules for stablecoin issuers.
Dollar-linked tokens continue to dominate the sector, accounting for more than 99% of total stablecoin supply, according to the source material. A won-backed settlement asset would therefore represent a locally denominated alternative for institutions using Injective’s tokenized-asset markets.
Moneyiar market picture
Moneyiar data at 08:39 on October 21, 2026, showed Injective (INJ) at $8.7348265545, up 2.64% over 24 hours and 7.80% over seven days. STABLE traded at $0.0270490174, up 7.14% in 24 hours and 1.53% over seven days.
The same Moneyiar data showed Velo (VELO) at $0.0041544506, up 3.81% over 24 hours but down 10.02% over seven days. REAL (ASSET) stood at $0.1847972829, down 1.92% over 24 hours and up 0.30% over seven days.
