Frax and IQ Introduce Korean Won Stablecoin on Base Amid Regulatory Evolution
Crypto entities Frax and IQ have released KRWQ, a new Korean won-pegged stablecoin on the Base network, designed for global DeFi markets.
Furedata - According to Cointelegraph (October 30, 2025), crypto protocol Frax and AI platform IQ have collaborated to introduce KRWQ. This new stablecoin is pegged to the Korean won and launched on the Base blockchain, anticipating South Korea's evolving regulatory landscape.
The companies stated that KRWQ is the premier fully-collateralized won stablecoin on the Base network. Cointelegraph further reports a trading pair with USD Coin (USDC) has been established on the Aerodrome exchange, enabling immediate liquidity for users of the platform.
Its creators also assert KRWQ is the inaugural won-denominated stablecoin with multichain functionality. This is facilitated by cross-chain protocols like LayerZero and Stargate Finance, which enable transfers across different networks and enhance its utility within the broader DeFi ecosystem.
This launch coincides with South Korea’s growing ambitions for local currency stablecoins. The nation is actively developing a regulatory framework, with its central bank advocating for traditional banking institutions to spearhead the deployment of these new digital assets.
The Bank of Korea's preference for bank-led initiatives has faced pushback. Dr. Sangmin Seo of the Kaia DLT Foundation told Cointelegraph that clear rules are essential for all issuers to balance monetary risk with the potential for market innovation.
Navin Vethanayagam, IQ's co-founder, stated that KRWQ addresses a significant market deficiency. He emphasized the absence of a credible, large-scale stablecoin pegged to the Korean won, in contrast to the current dominance of USD-backed tokens in the marketplace.
Designed for full compliance with forthcoming South Korean legislation, KRWQ is currently intended for global DeFi markets. The developers clarified to Cointelegraph that it is not being offered to South Korean residents while lawmakers continue to deliberate on the rules.
Access to create and redeem the token is strictly controlled. Only eligible counterparties who have undergone Know Your Customer verification, including exchanges and institutional partners, are authorized to mint or burn KRWQ, ensuring a secure and regulated process for all participants.