Crypto protocol Frax and AI agent platform IQ have teamed up to introduce KRWQ, a Korean won-pegged stablecoin on Coinbase’s Base blockchain.
According to a statement seen by Cointelegraph on Thursday, KRWQ is the first fully backed won stablecoin to launch on Base, debuting alongside a USDC trading pair on the Aerodrome decentralized exchange.
The partners said KRWQ is also the first multichain won stablecoin, capable of moving across multiple blockchains through integrations with LayerZero and Stargate Finance.
South Korea has been accelerating efforts to establish a regulatory framework for local currency stablecoins, with the Bank of Korea urging traditional banks to take the lead in their issuance. The approach has faced pushback from the crypto industry, with Kaia DLT Foundation chair Dr. Sangmin Seo recently telling Cointelegraph that regulators should instead focus on creating “clear, innovation-friendly rules for stablecoin issuers.”
“KRWQ fills a crucial gap in the market,” said IQ co-founder Navin Vethanayagam. “While USD-backed stablecoins dominate globally, no credible won-pegged stablecoin has ever achieved scale — until now.”
Frax and IQ said KRWQ was built to align with South Korea’s upcoming stablecoin regulations, describing it as “developed in anticipation of the forthcoming stablecoin legislation” currently under review in the National Assembly.
However, the partners emphasized that KRWQ is not being marketed or offered to South Korean residents, noting that the token is intended for use in global DeFi markets while domestic regulatory discussions remain ongoing.
Minting and redemption will be restricted to eligible KYC-verified counterparties, including exchanges, market makers, and institutional partners integrated with the network.
KRWQ’s debut follows news from South Korean crypto custodian BDACS, which announced plans to launch its own won-backed stablecoin, KRW1, on Circle Internet Group’s Arc blockchain. BDACS first deployed KRW1 on Avalanche last month after completing a proof-of-concept with Woori Bank.
