BDACS Adopts LayerZero's OFT Standard for KRW1, Unifying Supply Across Chains While Retaining Won Reserve Structure

On September 7, local time, LayerZero announced that KRW1, the won-pegged stablecoin issued by South Korean digital asset custodian BDACS, had adopted its Omnichain Fungible Token (OFT) standard for cross-chain transfers. LayerZero described KRW1 as the first won-backed stablecoin issued in South Korea and BDACS as the first company to issue a won-backed stablecoin. It also said BDACS was South Korea's largest digital asset custodian by assets under custody, which exceeded KRW 80 billion in the first half of 2026. KRW1 already operates on Ethereum, Avalanche and Circle's Arc, but separate deployments on each network had created friction in its circulation and use. OFT is designed to maintain a single supply across connected networks by deducting an amount on the origin chain and recording the same amount on the destination chain when tokens move between chains. LayerZero's Stargate is the application that executes these transfers on users' behalf. OFT is also used by Tether's USDT0, PayPal's PYUSD and Paxos' USDG. LayerZero said the standard handles 87% of cross-chain transfer volume and has transferred a cumulative $280 billion across more than 170 chains. According to LayerZero, the structure under which each KRW1 is backed 1:1 by won held at Woori Bank, with reserves independently verified, will remain in place as network coverage expands. The company cited South Korea's won internationalization roadmap, released in July 2026, as context for the adoption, noting that it includes plans to establish a legal basis for won-denominated stablecoins by amending the Foreign Exchange Transactions Act. The announcement concerns a technical choice to unify cross-chain transfers and supply management for the existing KRW1, rather than the issuance of a new stablecoin. It did not specify which networks would implement the standard or when.