KRWQ is launched as the first Korean won stablecoin on the Base.

• KRWQ debuts as a Korean won-backed stablecoin on the Basel
• IQ and Frax drive innovation with the KRWQ multichain stablecoin.
• Stablecoin KRWQ aims for regulatory compliance in South Korea.

IQ and Frax announced the launch of KRWQ, the first stablecoin pegged to the Korean won (KRW) on the Base Layer 2 network, expanding the reach of stablecoins in multichain ecosystems. The KRWQ-USDC pair was made available on the Aerodrome platform, reinforcing Base's role as one of Ethereum's leading second-layer solutions for decentralized finance projects.

According to the joint statement, KRWQ is the first multichain token backed by the Korean won, operating with LayerZero's Omnichain Fungible Token (OFT) standard, as well as the Stargate bridge, which allows transfers between different blockchains. This integration aims to facilitate interoperability and increase the liquidity of assets pegged to fiat currencies in the DeFi ecosystem.

"KRWQ fills a critical gap in the market."

"While US dollar-backed stablecoins currently dominate, no reliably won-denominated stablecoin has ever been launched on a large scale," stated Navin Vethanayagam, Director of Strategy at IQ.

IQ highlighted that the partnership with Frax brings the protocol's experience in regulatory compliance, especially with frxUSD, to ensure that the project follows institutional standards and good governance practices.

However, KRWQ is not yet available to residents of South Korea, as the country continues to develop its regulatory framework for stablecoins. Issuance and redemption of the token are restricted to qualified institutional counterparties, such as exchanges, market makers, and authorized partners.

According to the communiqué,

"KRWQ was designed to be the first stablecoin fully compliant with regulations in Korea, developed in anticipation of future stablecoin legislation currently under review in the Korean National Assembly."

While the Korean government advances discussions on specific rules for won-denominated stablecoins, financial institutions and banks in the country are studying ways to integrate with the cryptocurrency market, seeking to balance innovation, security, and monetary sovereignty. This movement reflects the growing global trend of digitizing national currencies and strengthening the local stablecoin market.