Frax and IQ launch first Korean won stablecoin on Base
DeFi AI platform IQ AI and decentralized stablecoin protocol Frax Finance have teamed up to launch the first stablecoin pegged to the South Korean won (KRW).
Called KRWQ, the stablecoin launched on Base and uses LayerZero’s interoperability protocol for cross-chain transfers. According to the announcement, KRWQ is fully backed and debuted with a USDC trading pair on Aerodrome, a trading and liquidity marketplace on the Base network. IQ AI describes KRWQ as the first multichain Korean won stablecoin and the first tradable KRW-pegged stablecoin.
Currently, minting and redemption of the stablecoin are restricted to verified institutional partners, including exchanges, market makers, and integrated institutional partners that meet KYC requirements. IQ and Frax noted that the stablecoin is not being marketed or offered to South Korean residents and is “intended for use in global DeFi markets,” as lawmakers continue to discuss regulations for such tokens.
The launch aligns with South Korea’s planned stablecoin framework, which encourages broader use of the local currency in digital finance and introduces temporary limits on non-resident participation. South Korea’s central bank has pushed for banks to lead local currency stablecoin efforts while legislators consider a dedicated ruleset.
Previously, South Korean digital‑asset infrastructure provider BDACS announced partnership with USDC issuer Circle for a South Korean stablecoin initiative. BDACS said it will issue KRW-based KRW1 stablecoin on Circle’s new Arc network, after first going live on Avalanche in a proof-of-concept with Woori Bank.
In 2025, the global stablecoin market has been expanding rapidly, with a total market capitalization of over $307 billion, according to DefiLlama. The market remains overwhelmingly dominated by tokens pegged to the U.S. dollar, which account for nearly 99% of total capitalization. Tether (USDT) and Circle’s USDC continue to lead the sector, together representing around 85% of the fiat-pegged stablecoin market.
In July 2025, the United States passed the GENIUS Act, establishing a regulatory framework for stablecoins. Other jurisdictions, including the European Union (under its MiCA regulation) and several Asia-Pacific nations, are also moving to implement dedicated rules for stablecoins and digital-asset service providers.
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