KRWQ launches as first Korean won stablecoin on Base

IQ, in collaboration with Frax, has launched KRWQ, a stablecoin pegged to the South Korean won (KRW), marking the first such stablecoin on Coinbase's Ethereum Layer 2, Base. The launch included a KRWQ-USDC pair on Aerodrome. KRWQ is also noted as the first won-pegged multichain token, utilizing LayerZero's OFT standard for cross-chain transfers. Navin Vethanayagam of IQ stated that KRWQ fills a market gap, as no credible won-denominated stablecoin has launched at scale. IQ is leveraging Frax's regulatory compliance expertise from frxUSD in KRWQ's design to support institutional adoption.

Crucially, KRWQ is not currently marketed or offered to South Korean residents due to ongoing local regulatory development. Minting and redemption are restricted to eligible counterparties like exchanges and market makers. IQ anticipates that KRWQ will be the first fully regulatory compliant stablecoin in Korea, developed ahead of forthcoming legislation. This launch occurs while South Korea is actively pushing to develop a local currency-pegged stablecoin market to bolster monetary sovereignty, though debate continues over whether only regulated banks or also non-bank entities should be allowed to issue stablecoins.

(Source：The Block)