KRW1 Stablecoin adopts LayerZero’s Omnichain Fungible Token for cross‑chain expansion

BDACS, South Korea’s biggest digital‑asset custodian, announced that its KRW1 stablecoin will use LayerZero’s Omnichain Fungible Token (OFT) standard. The move creates a unified cross‑chain supply, allowing KRW1 to be transferred between supported networks without maintaining separate token pools.

How the OFT integration works

When a KRW1 token moves from one blockchain to another, the token is debited on the source chain and credited on the destination chain. LayerZero’s Stargate application handles the user‑facing transfer, preserving a single total supply across all connected chains.

Current and future network coverage

KRW1 already operates on Ethereum, Avalanche, Circle’s Arc and Polygon. The OFT framework will let BDACS add new chains without creating isolated versions of the stablecoin, mirroring the approach used for other LayerZero‑enabled stablecoins such as USDT0 and PYUSD.

Backing and compliance

Each KRW1 token remains fully backed 1:1 by Korean won held at Woori Bank. BDACS says its reserves are independently attested and the company holds SOC 1 and ISO 27001 certifications, with SOC 2 certification in progress.

Regulatory backdrop in South Korea

The expansion coincides with South Korean regulators shaping a framework for won‑denominated stablecoins. The Bank of Korea has advocated a bank‑led issuance model, while legislative work on the Digital Asset Basic Act and related stablecoin rules continues.

Key implications

• Unified supply reduces friction for users moving KRW1 across chains.
• BDACS can onboard additional blockchains without deploying separate liquidity pools.
• The integration aligns KRW1 with other major omnichain stablecoins, enhancing its global scalability.