Coinspeaker
Oct 30, 2025
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IQ and Frax Launch KRWQ, Korean Won Stablecoin on Base Network

Launch of KRWQ Stablecoin

  • IQ and Frax launched KRWQ, the first fiat-backed stablecoin pegged 1:1 to the South Korean Won, on October 30.
  • The token is available on Base, Coinbase's Ethereum Layer 2 network, filling a previous market gap for won-denominated stablecoins.

Technology and Infrastructure

  • KRWQ uses LayerZero’s Omnichain FungibleToken standard and Stargate bridge, allowing cross-blockchain transfers with zero slippage.
  • The initial KRWQ-USDC liquidity pool is live on Aerodrome, with BrainDAO managing over $40 million in assets to expand liquidity as needed.

Usage and Regulation

  • Minting and redemption are limited to eligible KYC'd entities like exchanges and institutional partners, not currently offered to Korean residents.
  • The project anticipates stablecoin legislation under review by the Korean National Assembly.

Backing and Reserves

  • KRWQ is built on Frax's infrastructure, backed by BlackRock’s BUIDL fund and Superstate’s USTB fund, using tokenized US Treasury bonds as reserves.
  • The current supply is 144.54 million tokens with a reserve ratio of 102.4%, awaiting independent third-party attestations.

Korean Market Context

  • IQ has been active in Korea since 2018, enhancing liquidity on exchanges like Upbit and Bithumb amidst the "Kimchi Premium" market conditions.
  • The project plans further expansion with networks such as Giwa, Kaia, and Fraxtal.