BDACS has selected LayerZero’s Omnichain Fungible Token standard for its KRW1 stablecoin, giving the won-backed asset a unified cross-chain system as the company seeks to expand its use outside South Korea.
Summary
- BDACS has selected LayerZero’s OFT standard to support cross-chain transfers of its Korean won-backed KRW1 stablecoin.
- KRW1 will maintain a unified supply across connected networks, with tokens debited on the source chain and credited on the destination chain.
- KRW1 remains backed 1:1 by Korean won held at Woori Bank as BDACS expands the stablecoin across blockchain networks.
- LayerZero said its OFT standard has processed $280 billion in lifetime transfers across more than 170 blockchains.
LayerZero said BDACS, South Korea’s largest digital asset custodian by assets under custody, chose its OFT standard after reviewing options for making KRW1 natively interoperable across multiple blockchains.
KRW1 already operates across several networks, including Ethereum, Avalanche and Circle’s Arc. BDACS said the separate deployments created friction when moving the stablecoin between networks, limiting its distribution and utility.
The new setup is designed to maintain one KRW1 supply across connected chains. When tokens move between networks, KRW1 will be debited on the source chain and credited on the destination chain, while LayerZero’s Stargate application will handle transfers for users.
LayerZero gives KRW1 a unified cross-chain supply
LayerZero’s OFT standard is already used for stablecoins including Tether’s USDT0, PayPal USD and Paxos-issued USDG.
The company said OFT currently facilitates 87% of cross-chain transfer volume and has processed $280 billion in lifetime transfers across more than 170 blockchains.
For BDACS, the structure replaces separate pools of KRW1 liquidity with a single supply distributed across connected networks. The issuer retains control over the token while gaining the ability to add new chains without creating isolated versions of the stablecoin.
A similar structure is used by USDT0. As crypto.news previously reported, the omnichain version of USDT uses LayerZero’s OFT standard to move dollar liquidity between supported blockchains without relying on separate bridge liquidity pools. USDT0 launched on Stellar on Sept. 2, extending the same infrastructure to the payments-focused network.
LayerZero has used its interoperability infrastructure for other regulated digital money products. In July, the company partnered with Keeta to make tokenized bank deposits transferable across Ethereum, Solana, Base and the Keeta Network, with nine fiat currencies included in the planned rollout.
PayPal has taken a similar route for its dollar stablecoin. LayerZero previously supported the expansion of PYUSD to additional blockchains through its interoperability infrastructure, using an omnichain structure intended to keep liquidity fungible across supported networks.
KRW1 expands from its original Avalanche launch
BDACS introduced KRW1 in September 2025 after completing a proof of concept with Woori Bank.
The stablecoin was initially launched on Avalanche, with each token backed 1:1 by Korean won held at Woori Bank. The setup included an API connection for verifying reserves.
BDACS later moved to extend KRW1 beyond its original network. In October 2025, the company disclosed plans to issue KRW1 on Arc, Circle’s Layer 1 blockchain designed for stablecoins, tokenized assets and programmable finance.
A Polygon deployment followed in December, when BDACS brought the won-backed token to the network with its Woori Bank-linked reserve verification system. The company positioned the Polygon version of KRW1 for payments, remittances and institutional transactions.
LayerZero said the OFT integration will give BDACS a common framework for managing KRW1 across networks instead of maintaining disconnected token supplies as more chains are added.
“The value of a Korean won stablecoin lies in its global scalability,” BDACS CEO Harry Ryoo said.
Ryoo said applying OFT gives KRW1 the technical foundation to move beyond South Korea and support more flexible use across several blockchains.
“Building on this technical foundation, we will continue to expand the scope of KRW1’s use going forward,” he added.
South Korea prepares rules for won stablecoins
The cross-chain expansion comes as South Korea continues developing its regulatory framework for won-denominated stablecoins.
The Bank of Korea reiterated in July that it favors a bank-led model during the initial stage of stablecoin issuance. The central bank said bank consortiums should take the lead while lawmakers continue negotiations over the country’s Digital Asset Basic Act and related stablecoin rules.
Private companies have continued testing their own infrastructure during the legislative process. South Korean financial super app Toss signed an agreement with Optimism and Sunnyside Labs in July for a three-month program examining won-linked stablecoin infrastructure, including payment settlement, compliance and privacy requirements.
KT has entered the same market through plans for a Token Factory and won stablecoin platform. The telecommunications group said in July that the system would support token issuance, billing and settlement while drawing on K Bank, BC Card and KT’s network infrastructure.
South Korea’s Won Internationalization Roadmap, published in July 2026, calls for amendments to the Foreign Exchange Transactions Act to establish a legal basis for won-denominated stablecoins. The plan includes offshore won accounts and a 24-hour offshore won settlement network scheduled for pilot work into 2027.
KRW1 will remain fully reserved 1:1 with Korean won held at Woori Bank as its network coverage expands, according to BDACS. The company said its reserves are independently attested.
BDACS surpassed 80 billion won in assets under custody during the first half of 2026. The company holds SOC 1 and ISO 27001 certifications and is pursuing SOC 2 certification, while its existing partners include Woori Bank, Galaxy Digital and Circle.
