• Injective and BDACS signed a memorandum of understanding, reported by The Block on October 20, 2026, aiming to make KRW1 the exclusive won-denominated settlement asset for RWAs on Injective.
• Minting and redemption of KRW1 are reported to be limited to approved institutional partners and remain subject to regulatory approval, so this is not open retail issuance.
• As of The Block's September 18, 2025 report, KRW1 was a proof-of-concept token on Avalanche that was not publicly circulated; this piece found no later circulation data.
• The Digital Asset Basic Act, reported by The Block as in final government consultation and slated for the national legislature in November 2026, would set the won-stablecoin framework.
• Watch whether the law permits non-bank issuers such as BDACS and whether any KRW1 supply appears on Injective.

Injective and BDACS have signed a memorandum of understanding that aims to make KRW1 the exclusive Korean won settlement asset for tokenized real-world assets on Injective, The Block reported on October 20, 2026. The stated goal is to let users trade and settle tokenized assets in won instead of dollar stablecoins. An MOU is an intention, and the reported conditions on minting show the plan is a long way from open issuance.

What the agreement commits

The memorandum designates KRW1 as the intended sole won-denominated settlement asset for RWAs and tokenization on Injective, but it does not open the token to the public. The Block reports that minting and redemption will be limited to approved institutional partners and remain subject to regulatory approval. That makes it an institutional settlement rail, not a consumer stablecoin launch, and the exclusivity applies only inside Injective's own RWA ecosystem.

Why a won stablecoin, and why now

The Block reports that USD-backed stablecoins make up over 98% of total stablecoin market capitalization, and that, according to the companies, South Korea's top five crypto exchanges have seen 18 consecutive months of net stablecoin outflows to overseas platforms, about $10.4 billion in total. These are company-supplied figures that this piece has not checked against exchange or regulator data. BDACS CEO Harry Ryoo is quoted saying tokenized-market demand stays anchored to dollars without onchain won infrastructure.

The regulatory perimeter decides the outcome

The timing follows South Korea's effort to define a legal framework for won stablecoins. The Block, citing Asiae, reports that the Digital Asset Basic Act is in the final stages of government consultation and scheduled for discussion in the national legislature in November 2026. Until it passes and its issuer rules are known, the MOU cannot be read as proof that a non-bank issuer such as BDACS will be allowed to run this arrangement at scale.

What is known about KRW1 and BDACS

KRW1 predates this deal. The Block reported on September 18, 2025 that BDACS launched it on Avalanche at proof-of-concept stage, collateralized by won held at Woori Bank, and not publicly circulated. Reserve backing is therefore BDACS's reported claim, not an audit result, and this piece found no later circulation data. Injective's $7.5 billion RWA volume and BDACS's 80 billion won in custody for the first half of 2026 are likewise company-reported.

What to watch and what it means

For institutions evaluating won-denominated tokenized assets, the practical test is whether KRW1 circulates on Injective and whether the Act lets BDACS issue and redeem at scale. Compliance teams should treat the reserve arrangement as an issuer claim until attested, and should not read an MOU as live settlement capacity. The next signals are the bill's passage, issuer eligibility rules, and any onchain KRW1 supply on Injective.