KRWQ: Korean Won stablecoin debuts on Ethereum Layer 2, IQ and Frax team up to create a new landscape

New Choice for Korean Won Digitalization

IQ and Frax, two major platforms, jointly announced the launch of KRWQ—a stablecoin pegged to the Korean Won. This new type of stablecoin is officially live on Coinbase’s Base network, with the KRWQ-USDC trading pair debuting on the Aerodrome trading platform. For users interested in Korean Won-related trading, KRWQ offers a brand-new avenue—it’s the first Korean Won-pegged stablecoin launched on an Ethereum layer 2 network, providing convenience for global investors to access Korean assets.

Cross-Chain Interconnection, Breaking Blockchain Barriers

The technical implementation of this stablecoin is cutting-edge. KRWQ adopts LayerZero’s cross-chain transfer token standard (OFT) and facilitates value transfer across multiple blockchains via Stargate’s cross-chain bridge. This means users can not only use KRWQ on the Base network but also perform seamless transfers on other supported chains, further expanding its application ecosystem.

Building on the Success of frxUSD

Frax has accumulated extensive experience in the stablecoin field, with its frxUSD product gaining recognition in the market. In this collaboration, IQ will draw on Frax’s compliant operational experience and regulatory adaptability to lay a solid institutional foundation for KRWQ’s development. This “established stablecoin + emerging platform” combination aims to provide more credible Korean Won solutions for institutional investors and large traders.

Compliance First, Institutions Priority

As Korea’s market is still exploring regulatory frameworks for stablecoins, KRWQ’s issuance and redemption are currently limited to qualified institutional participants—exchanges, market makers, and institutional partners. While this mode restricts direct access for ordinary Korean residents, it ensures legal clarity for the product and leaves room for future regulatory breakthroughs.

For traders interested in Korean Won asset allocation, this new option not only represents an innovative direction in the stablecoin market but also signifies a deep integration of traditional fiat currency with the blockchain world.