Frax Finance and IQ officially announced the launch of KRWQ, a Korean-won pegged stablecoin, on October 30, 2025. The token will transact on the Base network, which is an Ethereum layer-2 associated with Coinbase. It is paired with USDC on the Aerodrome exchange.
KRWQ will also be the first Korean Won-pegged token that will work across multiple blockchains. It uses LayerZero’s OFT standard and the Stargate bridge to allow smooth transfers between different networks. The project emphasizes regulatory compliance, building on Frax’s experience with frxUSD to support institutional use.
Koreans can’t use it yet
However, despite its Korea-focused branding, KRWQ is not yet marketed or offered to South Korean residents. South Korea is still working on setting clear rules for stablecoins. For now, only approved players like exchanges, market makers, and institutional partners will be allowed to create or redeem the stablecoin.
The KRWQ is also not recognized as an official stablecoin by the Bank of Korea (BOK), as local regulation of won-stablecoins remains in flux. Earlier, the central bank had urged local banks to lead stablecoin issuance as part of Korea’s policy framework. But many raised questions over private versus bank-led models
Meanwhile, South Korea’s regulated digital-asset player BDACS announced its own won-based stablecoin, KRW1, through an MOU with Circle Internet Group to deploy on Circle’s new blockchain Arc. BDACS filed the KRW1 trademark in December 2023 and launched a proof-of-concept via Avalanche earlier in 2025.