South Korean digital asset custodian BDACS is migrating its won-backed KRW1 stablecoin to LayerZero’s Omnichain Fungible Token standard for usage across multiple blockchains.
The KRW1 token has already been deployed to other networks, including Ethereum, Avalanche, and Circle’s Arc. BDACS says that having a separate copy of an asset on each network caused friction for customers transferring the asset between networks, and hampered its use and distribution. BDACS hopes to replace that model with a single asset supply across compatible networks with their OFT.
Under the new system, a KRW1 token transfer from one blockchain network to another would be deducted from the source blockchain network and added to the target blockchain network, while the user interface for these transactions would be done through LayerZero’s Stargate application. BDACS would maintain the issuance of tokens and provide an interface to add new networks without separate token supplies or liquidity pools.
LayerZero’s OFT technology is also used by stablecoins, such as USDT0. It is also used by PayPal USD and USDG▲$1.00, issued by Paxos. LayerZero claims that 87% of cross-chain transfer volume uses the LayerZero standard, with over $280 billion of lifetime transfers on 170+ blockchains. USDT0 follows a very similar architecture for moving dollar liquidity between supported networks without independent pools of bridge liquidity.
The integration was part of KRW1’s overall multichain strategy. After launching on the Avalanche blockchain in September 2025, BDACS announced the integration of the token with Woori Bank after a successfully completed proof of concept. The KRW1 token at launch was 1:1 backed by Korean won held by Woori Bank and verified via API connection.
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This was followed by the roll-out of Circle’s Arc and KRW1 on the Polygon blockchain, allowing for payments, remittances, and institutional use.
BDACS CEO Harry Ryoo said the value of a Korean won stablecoin is based on its global scalability. He said the OFT implementation gives KRW1 the technical foundation to be more flexible across blockchains, and BDACS plans to continue expanding the token’s possible use cases.
This follows South Korea’s consideration of a framework for the issuance of stablecoins pegged to the won. The BOK has backed a bank-led stablecoin issuance model in the early-stage consultation process, as lawmakers consider the Digital Asset Basic Act. Private firms are testing the infrastructure to digitize the won for use in payments, settlements and other financial applications.
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In August 2026, BDACS, building upon KRW1’s payment processing capability, announced a pilot contract to integrate the stablecoin for offline retail payments, furthering its use case from blockchain operations to real world retail payments.
According to BDACS, KRW1 will be fully backed by Korean won at Woori Bank as the exchange’s blockchain expands, with reserves being independently attested. The custodian had over 80 billion won in assets under custody in the first half of 2026. Partners with BDACS include Woori Bank, Galaxy Digital, and Circle.
