South Korean digital asset custodian BDACS has selected LayerZero’s Omnichain Fungible Token (OFT) standard for its KRW1 stablecoin to support transfers across blockchain networks.
As per the announcement, after a rigorous review of options to bring KRW1 natively multichain, BDACS selected LayerZero’s OFT standard as its interoperability solution.
KRW1 currently operates on Ethereum, Avalanche, and Circle’s Arc. BDACS said managing separate deployments has created friction around cross-chain transfers and affected the stablecoin’s distribution and utility. Under the new structure, KRW1 will use a single cross-chain supply rather than separate versions of the stablecoin on individual networks.
How KRW1 will move across chains
Under LayerZero’s OFT standard, KRW1 will be debited on the blockchain where a transfer begins and credited on the destination network. LayerZero’s Stargate application will facilitate the transfers, allowing users to move KRW1 between supported networks without relying on separate pools of the stablecoin on each chain.
The structure is intended to reduce liquidity fragmentation as BDACS adds more blockchain networks. It also allows the issuer to manage a common KRW1 supply across connected networks.
LayerZero said the OFT standard is used by stablecoins including Tether’s USDT0, PayPal USD and Paxos-issued USDG. According to the company, OFT has facilitated 87% of cross-chain transfer volume and processed $280 billion in lifetime transfers across more than 170 blockchains.
KRW1 keeps its won backing
The LayerZero integration does not change KRW1’s reserve structure. BDACS said each KRW1 will continue to be backed 1:1 by Korean won held at Woori Bank, with independent attestations of the reserves.
BDACS first introduced KRW1 in September 2025 after completing a proof of concept with Woori Bank. The stablecoin initially launched on Avalanche before the company expanded its availability to additional networks.
The company later announced plans to issue KRW1 on Circle’s Arc blockchain, while a Polygon deployment followed in December 2025. BDACS positioned the Polygon version for potential payments, remittances and institutional transactions.
Earlier in May, BDACS partnered with Aptos Foundation to expand KRW1 into on-chain payments and commerce. The integration marked KRW1’s first deployment on a non-EVM blockchain.
The LayerZero integration is focused on connecting KRW1’s existing and future deployments rather than introducing a new stablecoin.
Korea prepares for won stablecoins
The expansion comes as South Korea moves toward a regulatory framework for won-denominated stablecoins. South Korea’s Won Internationalization Roadmap, published in July 2026, calls for a legal framework for won-denominated stablecoins through changes to the Foreign Exchange Transactions Act. The roadmap also includes plans for a 24-hour offshore won settlement network, with pilot operations extending into 2027.
The Bank of Korea has favored a bank-led model for stablecoin issuance during the initial stage, while lawmakers continue discussions on the Digital Asset Basic Act and related stablecoin rules.
South Korean banks and financial companies are also testing stablecoin-based payment systems. In June, Toss Bank partnered with the Solana Foundation to test stablecoin-powered cross-border remittances and settlements through a proof of concept.
Telecommunications company KT has also outlined plans for a Token Factory and won stablecoin platform, involving infrastructure from K Bank and BC Card. These initiatives are developing alongside the country’s broader push to establish a framework for digital versions of the won.
BDACS targets wider blockchain use
The LayerZero integration is part of BDACS’s efforts to expand KRW1 across multiple blockchain networks.
BDACS CEO Harry Ryoo said the value of a Korean won stablecoin depends on its ability to scale globally. He said the OFT integration provides KRW1 with a technical foundation for broader use across multiple blockchains.
LayerZero has already been involved in the expansion of other digital money products. Its OFT infrastructure supports Tether’s USDT0 and has also been used in the expansion of PayPal’s PYUSD across blockchain networks.
LayerZero has also worked on interoperability for tokenized bank deposits, reflecting the growing demand for regulated digital assets to move across blockchains.
BDACS reported more than 80 billion won in assets under custody in the first half of 2026, making it South Korea’s largest digital asset custodian by assets under custody, according to the company.
KRW1’s next phase will depend on its expansion to more LayerZero-connected networks and South Korea’s evolving stablecoin rules.
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