The first-ever Korean won-pegged stablecoin on Coinbase’s Base Layer 2 network has officially launched. The new asset, KRWQ, is issued through a collaboration between IQ and Frax Finance, marking a major milestone for cross-chain stablecoin infrastructure and Asia’s expanding digital asset ecosystem.
KRWQ Becomes the First Won Stablecoin on Base
The KRWQ stablecoin is pegged 1:1 to the South Korean won (KRW) and leverages LayerZero’s Omnichain Fungible Token (OFT) standard to allow seamless movement across multiple blockchains.
It is now live on Base, the Ethereum Layer 2 network developed by Coinbase, and paired with USDC on the decentralized exchange Aerodrome, offering traders the first on-chain won-denominated market on the platform.
Through this integration, KRWQ gains access to the fast-growing Base DeFi ecosystem, enabling frictionless cross-border settlements and new liquidity avenues for Asia-based institutions and developers.
Frax and IQ Partner for Multi-Chain Compliance
KRWQ’s launch is the product of a partnership between IQ, known for blockchain data products, and Frax, one of the leading innovators in algorithmic and hybrid stablecoins.
By building on Frax’s infrastructure and compliance expertise, the project aims to attract institutional users while maintaining transparency and 1:1 collateral backing. The collaboration also utilizes LayerZero’s Stargate bridge, making KRWQ fully multi-chain from inception.
Despite its name, the stablecoin is not currently available to South Korean residents, as the country’s stablecoin regulatory framework is still being finalized.
Regulatory Context and Market Impact
The timing of the KRWQ launch aligns with South Korea’s growing focus on won-based stablecoins, spurred by recent policy reforms and digital finance initiatives.
Regulators have been studying how regulated stablecoins can help reduce the “kimchi premium”, the recurring price gap between domestic and international crypto markets caused by capital flow restrictions.
Other efforts include BDACS’s KRW1 stablecoin and a consortium of major Korean banks developing pilot projects to test KRW-backed digital currencies in controlled environments.
KRWQ’s entry into this evolving landscape positions it as a technologically advanced, globally accessible alternative built for cross-border payments, remittances, and DeFi applications.
A New Era for Regional Stablecoins
The launch of KRWQ underscores how Asia’s stablecoin ecosystem is diversifying beyond dollar-pegged assets. With Base emerging as a hub for institutional-grade DeFi and LayerZero facilitating cross-chain connectivity, the won-backed token could become a blueprint for compliant, interoperable fiat stablecoins across emerging markets.
As the regulatory environment matures in South Korea, KRWQ’s infrastructure-first approach may give it a first-mover advantage in bridging Asian fiat currencies with global crypto liquidity.