KRWQ is a fully fiat backed stablecoin designed to maintain a 1:1 peg with the South Korean Won (KRW). Launched on October 30, 2025 by IQ and Frax Finance, it is the first Korean won-pegged tradeable stablecoin on the Base network and the first to utilize LayerZero's Omnichain Fungible Token (OFT) standard for native cross-chain functionality. The stablecoin was designed in anticipation of forthcoming stablecoin legislation in South Korea; at launch, it was not marketed to residents of the country and its minting was restricted to eligible institutional partners. ^{[2] [3] [5]}​

In November 2025, KRWQ surpassed 1 billion won in total trading volume less than a month after launch. The milestone coincided with the activation of AERO emissions on Aerodrome, expanding incentives for the KRWQ-USDC pool on Base and supporting deeper liquidity. ^{[8] [9]}​

In December 2025, KRWQ joined Frax's FraxNet, a unified infrastructure for cross-chain stablecoin settlement, and launched on the Ethereum mainnet. ^{[11] [16]}​

Overview

KRWQ is a stablecoin pegged to the South Korean Won, launched in October 2025 through a partnership between IQ and Frax Finance. ^{[2] [3]} KRWQ was the first Korean won-pegged stablecoin to launch on Coinbase's Ethereum Layer 2 Base network. ^{[2] [6]}​

The project was created to address inefficiencies in Korea's financial infrastructure, including a high reliance on USD for cross-border trade, and the lack of a regulator-friendly, won-denominated stablecoin for on-chain institutional use. ^[4] Navin Vethanayagam, co-founder of IQ AI, stated, "KRWQ fills a critical gap in the market. While USD-backed stablecoins dominate today, no credible won-denominated stablecoin has ever launched at scale." ^[5]​

KRWQ is not a Central Bank Digital Currency (CBDC). The project's primary objective is to offer a transparent and efficient digital representation of the KRW that facilitates 24/7, low-cost transactions across multiple blockchain networks. The stablecoin is designed to be fully backed by KRW reserves. ^{[1] [4] [5]}​

KRWQ is the first KRW stablecoin available for trading on the OKX platform and Coinbase DEX. ^[7] In November 2025, KRWQ surpassed 1 billion won in total trading volume less than a month after launch. The milestone coincided with the activation of AERO emissions on Aerodrome, expanding incentives for the KRWQ-USDC pool on Base and supporting deeper liquidity. ^[8]​^[9]​

In December 2025, KRWQ joined the Circle Alliance Program, a global community of teams focused on bringing the world on-chain, powered by USDC. ^[10]

Technology

Multi-chain Architecture

To enhance accessibility, reduce transaction costs, and improve scalability, the project has adopted a multi-chain strategy, utilizing LayerZero's Omnichain Fungible Token (OFT) standard and the Stargate bridge to allow for transfers across different blockchains. ^{[2] [3]} By deploying on multiple blockchains, KRWQ allows users to transact on the network that best suits their needs regarding speed, cost, and security. ^[1] Bryan Pellegrino, Co-Founder and CEO of LayerZero Labs, commented on the launch, stating, "KRWQ is an important step toward a more connected global financial system. LayerZero's interoperability makes it possible for fiat-backed assets like the Korean won to exist natively across chains." ^[5]​

The stablecoin is currently live on the following networks:

• Ethereum (Layer 1): 0xc00db6b41473d065027f5ed6fada20fde75f142e
• Base (Layer 2): 0x370923D39f139C64813f173a1bf0b4f9Ba36a24f

The project has also announced plans to expand its presence to other Layer 2 scaling solutions to further improve transaction efficiency. Planned future deployments include:

• Giwa
• Optimism
• Scroll
• Linea

This expansion onto Layer 2 networks is aimed at leveraging their lower gas fees and faster confirmation times compared to the Ethereum mainnet. ^[1]​

Use Cases

KRWQ is designed for several primary applications that leverage its 24/7 availability and programmability. ^[4]​

• Outbound Remittances: Facilitating instant, low-cost cross-border payments, initially targeting corridors from Korea to Southeast Asia, China, and Japan.
• Cross-Border B2B Settlement: Allowing Korean merchants to pay international suppliers in markets like China and Japan with T+0 settlement, reducing FX spreads and operational delays.
• Institutional On-Chain FX & Hedging: Providing 24/7 on-chain KRW liquidity for market makers and funds to hedge exposure without being constrained by traditional banking hours.

Roadmap

The development of KRWQ follows a clear, four-phase roadmap designed to build trust, scale liquidity, and achieve full integration with the domestic financial system. ^[4]​

Phase 1 – Launch & Foundational Liquidity (Active)

This initial phase includes the deployment of the USDC-backed token on the Base network with transparent reserves and the establishment of the initial liquidity pool on the Aerodrome decentralized exchange.

Phase 2 – Attestation & Reserve Diversification (2025)

Scheduled for 2025, this phase involves appointing a qualified auditing firm to provide independent monthly attestations of reserves. It also marks the beginning of the transition of reserve assets to a portfolio of short-term Korean Treasury Bonds, Korean won money market securities, and Korean won held in segregated, bankruptcy-remote custody.

Phase 3 – Institutional Expansion (2026)

Planned for 2026, this phase is dedicated to deepening the Treasury Bill reserve backing, securing listings on additional exchanges, and integrating with remittance providers, Payment Service Providers (PSPs), and institutional Over-The-Counter (OTC) desks to scale utility and liquidity.

Phase 4 – Regulated Banking Integration (2026–2027)

The final phase involves partnering with regulated Korean banking institutions to enable direct, native KRW wire-in and wire-out for minting and redemption. This is intended to achieve the project's goal of creating a seamless, fully compliant bridge between the traditional Korean financial system and the global on-chain economy.

1B in Volume Milestone

In November 2025, KRWQ surpassed ₩1 billion in total trading volume, becoming the first Korean won-pegged stablecoin to reach this milestone less than a month after its launch. The achievement was announced on November 19, 2025, and coincided with the activation of AERO emissions on Aerodrome. This was intended to expand incentives for the KRWQ-USDC liquidity pool on the Base network and support deeper liquidity. ^{[8] [9]}​

Commenting on the achievement, Navin Vethanayagam of IQ stated, "Crossing one billion won in trading volume so quickly shows the market's need for a Korean won stablecoin." ^[9] Sam Kazemian of Frax Finance added that the "early momentum shows how new fiat-backed stablecoins can integrate seamlessly with global DeFi liquidity." ^[8]​

Dave Shin Appointed as COO

On November 25, 2025, KRWQ announced the appointment of finance and blockchain executive Dave Shin as its new Chief Operating Officer (COO) to help accelerate the stablecoin's expansion. ^{[14] [15]}​

Shin brings over fifteen years of senior experience from both traditional finance (TradFi) and the blockchain industry. His background includes roles at TD Bank, Barclays and Morgan Stanley. In the blockchain sector, he held leadership roles at LayerZero Labs, Klaytn, Immutable, and Tezos. Shin is also the author of the globally published Wiley book, The Web3 Era. ^[14]​

As COO, Shin is responsible for KRWQ's operational buildout and its integration with exchanges, liquidity providers, and institutional workflows. Upon his appointment, Shin noted that KRWQ provides "a digitally-settled alternative that collapses settlement risk, reduces balance-sheet usage, and enables continuous mark-to-market liquidity." ^[14]​

​Navin Vethanayagam of IQ stated that Shin has "a rare combination of experience" in both finance and blockchain, making him ideal for KRWQ's expansion phase. Frax founder Sam Kazemian added that Shin's expertise "make him the ideal person to lead KRWQ’s operations." ^[14]​

Joining Fraxnet

On December 10, 2025, KRWQ integrated with Frax's FraxNet, a unified infrastructure for cross-chain stablecoin settlement. The collaboration between Frax and IQ was established to create a regulated and capital-efficient KRW-USD settlement rail for global investors. As part of the launch, KRWQ became available on the Ethereum mainnet, complementing its existing deployment on Base. ^{[11] [16]}

A KRWQ–frxUSD liquidity pool was also launched on Uniswap V4 to serve as the primary on-chain foreign exchange (FX) market between the two stablecoins. The integration routes KRWQ through FraxNet's system for managing stablecoins across multiple blockchain networks. ^{[11] [12]}​

​Sam Kazemian, Founder and CEO of Frax, stated that the integration "expands this framework to the Korean won and shows how global currencies can participate in regulated stablecoin infrastructure." Dave Shin, COO of KRWQ, added that the move "gives Korea its first true stablecoin settlement rail...This creates a compliant KRW–USD corridor that finally reflects how global Korea has become." Navin Vethanayagam of IQ also commented, "With KRWQ live on Ethereum and fully integrated with the Frax ecosystem, the won now has stablecoin rails that match its global reach." ^{[11] [13] [16]}