CMC News

KRWQ #Stablecoin Launches on #Base as Korea Goes Multichain

A partnership between Frax and IQ has produced KRWQ, marking the debut of a Korean won-pegged #stablecoin on Coinbase's Base layer-2 blockchain. The companies launched a KRWQ-$USDC trading pair on Aerodrome exchange Thursday, though the token is not yet available to South Korean residents due to pending regulations.

IQ co-founder Navin Vethanayagam emphasized the market gap being addressed. "While USD-backed stablecoins dominate today, no credible won-denominated stablecoin has ever launched at scale," he stated in Thursday's announcement.

LayerZero's Omnichain Fungible Token standard and Stargate Finance bridge technology power KRWQ's multichain functionality. This infrastructure enables seamless transfers across multiple blockchain networks, distinguishing it as the first won-denominated #stablecoin with cross-chain capabilities.

Minting and redemption remain restricted to eligible KYC'd counterparties, including exchanges, market makers, and integrated institutional partners. The companies emphasized that KRWQ is intended for global DeFi markets while South Korea's National Assembly continues to review stablecoin legislation.

The token was designed with full regulatory compliance in mind, developed in anticipation of forthcoming rules currently under deliberation. However, the stablecoin is not being marketed or offered domestically as lawmakers finalize their approach to governing such tokens.