IQ and Frax have launched KRWQ, the first Korean Won stablecoin on Base, marking a significant milestone for fiat-backed assets in decentralized finance. Announced on October 30, 2025, KRWQ is fully pegged 1:1 to the South Korean Won and designed for institutions and DeFi platforms that need transparent and compliant digital liquidity.

IQ’s Chief Brain, Navin Vethanayagam, said the launch addresses a long-standing gap in the market, as there has never been a credible won-denominated stablecoin at scale. IQ has operated in Korea since 2018 and has now joined forces with Frax to bring a stable, regulated version of the Korean Won into global markets.

Why KRWQ Matters for the DeFi Ecosystem

KRWQ went live on Base, Coinbase’s Layer 2 Ethereum network, using LayerZero’s Omnichain FungibleToken (OFT) standard. This setup allows KRWQ to move smoothly across multiple blockchains using Stargate, a bridge that enables liquidity transfers without slippage.

Bryan Pellegrino, CEO of LayerZero Labs, called the launch an important step toward connecting global finance on-chain. He explained that interoperability now allows real-world assets like national currencies to operate seamlessly across networks, which could pave the way for broader fiat-backed adoption in DeFi.

To build liquidity, the first KRWQ–USDC pool was launched on Aerodrome, the main decentralized exchange on Base. BrainDAO, which manages more than $40 million in assets, will help grow liquidity as trading demand increases.

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The Role of Frax and LayerZero

Frax, known for its scalable and transparent stablecoin systems, is powering KRWQ’s underlying infrastructure. Its existing stablecoin, frxUSD, is partially backed by tokenized U.S. Treasuries through BlackRock’s BUIDL fund and Superstate’s USTB fund. These reserves are designed to maintain transparency and compliance under the U.S. Genius Act.

With KRWQ, Frax is extending this infrastructure to the Korean Won for the first time. Founder Sam Kazemian described it as a natural expansion of Frax’s technology, combining stability, security, and accessibility. LayerZero’s OFT protocol ensures the token remains natively deployable across chains while maintaining unified liquidity.

Alex Lim, Head of APAC at LayerZero and Executive Director of the Asia Stablecoin Alliance, said KRWQ sets a new benchmark for how fiat-backed assets can operate with zero-slippage bridging and synchronized supply across ecosystems.

Designed for Institutional Trust and Compliance

Minting and redemption of KRWQ are restricted to verified institutional partners, including exchanges and market makers. It is not currently available to Korean residents and is instead focused on the global DeFi market. The token’s design anticipates upcoming Korean stablecoin regulations, which are still being reviewed in the National Assembly.

IQ and Frax emphasized that KRWQ’s controlled framework ensures all minted tokens remain fully backed by fiat reserves. The token’s live dashboard shows over 144.54 million KRWQ in circulation with a 102.4 percent reserve ratio, though third-party attestations are still pending.

What KRWQ Means for the Future of Stablecoins

The arrival of KRWQ, the first Korean Won stablecoin on Base, highlights how stablecoin development is shifting beyond the dollar. It shows that regional currencies can find their place in decentralized finance through collaboration, transparency, and regulatory foresight.

As Base continues to grow, KRWQ could play a key role in diversifying liquidity pools and connecting Asian markets to global DeFi. Its launch by IQ and Frax represents not just a technical achievement but also a step toward a more balanced, multi-currency stablecoin ecosystem that reflects the diversity of the real-world economy.