LayerZero, a global blockchain interoperability infrastructure company, said on Sept. 8 it will support its OFT (Omnichain Fungible Token) technology for KRW1, a won stablecoin issued by digital asset infrastructure firm BDACS.

LayerZero said the OFT application will allow KRW1 to move and be used as the same asset across multiple networks rather than being limited to a specific blockchain. OFT is a LayerZero token standard designed to let a digital asset be used as the same asset on multiple blockchains. When an asset moves to another blockchain, it issues or unlocks on the other network an amount equivalent to what is burned or locked on one network, keeping total circulating supply consistent. It reduces the need to issue separate wrapped tokens for each chain and eases liquidity fragmentation that occurs when an asset is split into multiple forms.

LayerZero said it is expanding its business beyond infrastructure that supports such asset movement and circulation into financial market infrastructure where assets are traded and payments are made. It introduced the high-performance blockchain Zero and the exchange infrastructure ATLAS, which integrates trade matching, clearing, settlement and risk management. It said this strategy aims to build a foundation for various assets to move beyond blockchain boundaries and also be traded and settled in global markets.

Jong-gyu Lim (임종규), head of LayerZero Asia, said multichain support in the stablecoin market is becoming a basic requirement rather than an option. He said more companies and consultative groups in South Korea are reviewing stablecoin issuance amid a recent trend of regulatory easing. He added that what matters is not issuance itself but how stably an issued asset circulates across multiple blockchains, and said applying OFT to KRW1 is an example that has laid a stepping stone for won-based asset circulation. He said LayerZero will become a benchmark for multichain expansion for domestic stablecoin operators.