IQ and Frax Launch KRWQ Korean Won Stablecoin on Base

Published: 2025-10-30 18:47:03 |

IQ and Frax have launched KRWQ stablecoin, the first Korean Won stablecoin on Coinbase’s Base Layer-2 network. The fiat-backed token uses LayerZero’s Omnichain FungibleToken (OFT) standard and the Stargate bridge for seamless cross-chain transfers. KRWQ stablecoin runs on Frax’s compliance framework, with reserves in tokenized US Treasury bonds backed by BlackRock’s BUIDL and Superstate’s USTB funds. With a live supply of 144.54 million and a 102.4% reserve ratio, independent attestations are pending. Minting and redemption require KYC and are limited to approved institutions; Korean residents are excluded. The first KRWQ/USDC pool launched on Aerodrome, and BrainDAO is set to boost DeFi liquidity. Positioned ahead of South Korea’s upcoming stablecoin law, KRWQ offers traders a new hedging tool and multi-chain transfer option.

Neutral

Since KRWQ is a pegged stablecoin, its market price will remain fixed to the Korean Won, resulting in minimal direct price volatility. In the short term, the launch expands liquidity options for traders via new DeFi pools and cross-chain transfers, but does not affect KRWQ’s fixed peg. Over the long term, institutional backing and compliance framework may drive increased adoption and DeFi utility, yet stablecoin fundamentals keep its price stable, leading to a neutral impact on KRWQ’s market value.