Injective and BDACS sign Memorandum of Understanding on settlement of litigation
Injective has signed a memorandum of understanding with BDACS, the South Korean custodian behind the KRW1 stablecoin, to make KRW1 the sole payment asset denominated in won for tokenized physical assets on the network.
10/22/20263 min read
What is a Memorandum of Understanding (MOU)?
This agreement is a memorandum of understanding; in normal commercial practice, it is a statement of intent rather than a binding contract, and neither party disclosed terms that suggest otherwise. More importantly, the announcement clarifies that the issuance and repurchase of KRW1 will be limited to approved institutional partners and remain subject to regulatory approval.
That condition is almost decisive here. South Korea's Basic Law on Digital Assets, which would establish the framework for won-denominated stablecoins, is reportedly in its final stages of government consultation, with discussions in the national legislature expected next month. Until this law is passed, the payment asset at the heart of this deal operates without the legal basis that its issuance model assumes. Therefore, interpreting this announcement as a launch is incorrect. It's a position taken before the law takes effect, as both parties want to be among the first when the law is enacted.
The issue of pegging the dollar is real.
Ryoo's wording deserves serious consideration as it describes a genuine structural problem, not a marketing complaint. Cryptocurrency markets are primarily settled in dollar-denominated stablecoins, meaning a South Korean investor buying a South Korean asset tokenized on a public chain will incur currency conversion fees and dollar risk unrelated to the investment. This inconvenience might be acceptable for speculative trading but unacceptable for the institutional capital flows that asset tokenization is geared towards, as a domestic fund cannot arbitrarily accept dollar risk during settlement.
Every country with a currency and ambitions to tokenize assets faces this issue, and the responses have been consistent. The MiCA legal framework has shaped the issuance of euro stablecoins in Europe, the ECB is building Pontes as a wholesale payment bridge for banks, and South Korea has been working on issuing won-denominated stablecoins for almost a year now. The general consensus is that without assets denominated in the local currency, tokenizing domestic assets would be equivalent to building a dollar market with local assets within it.
What Injective receives and the meaning of exclusivity
For Injective, this deal is primarily about positioning. The chain competes with networks that have much larger ecosystems in the RWA (Revenue, Exchange, and Warehousing) business, and the exclusive relationship with a registered South Korean virtual asset service provider is a differentiating factor in a market where foreign chains struggle to penetrate. BDACS reported over 80 billion won in assets held in custody in the first half of 2026, a serious institutional custody operation by South Korean standards and a modest figure globally.
The exclusivity should be understood carefully in only one direction. It means that KRW1 is the only won-denominated payment asset for RWA operations on Injective. It does not mean that Injective is the only chain for KRW1, South Korea's first won-denominated stablecoin and one that has pursued multi-chain distribution ever since. This agreement is exclusive from Injective's side, which is a less valuable form of monopoly, and that asymmetry is typical of a chain seeking to attract a particular issuer rather than the other way around.
Assessment and Conclusion
Three things would transform the memorandum of understanding (MOU) into infrastructure. The Basic Law on Digital Assets needs to be passed in a form that allows the issuance and redemption of tokens for institutions under the terms described. A de facto Korean tokenized digital asset needs to be issued on an Injective basis, as a payment asset with nothing to pay for is merely a representation. And liquidity needs to be sufficient so that a transaction in won is not executed at an effective price lower than the dollar payment method it replaces, a point where most local currency payment initiatives fail.
None of that happened. What did happen was that both sides positioned themselves ahead of a legislative schedule, which is reasonable behavior and not like a product. The noteworthy date is the legislative review next month, not this announcement.
Disclaimer: The content in this article is for informational, research, data analysis, and reference purposes only regarding the cryptocurrency market. All opinions, assessments, forecasts, or opinions reflect the author's perspective at the time of publication and do not constitute investment advice, solicitations for buying or selling, trading recommendations, advertising, marketing, or promotion of any financial products, services, or cryptocurrencies. Mentions of projects, tokens, protocols, exchanges, wallets, or cryptocurrency service providers (CASPs) are for research, analysis, or informational purposes only and should not be construed as endorsements, recommendations, or guarantees in any way. HCCVenture does not broker, advertise, market, promote, or connect users in Vietnam with any cryptocurrency services from CASPs. HCCVenture does not accept asset custody, investment mandates, manage assets, or execute transactions on behalf of clients. All investment decisions are made entirely through the reader's own research (DYOR), evaluation, and responsibility; HCCVenture is not liable for any losses or damages arising from the use of or reliance on the information presented in this article.
Compiled and analyzed by HCCVenture
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