Korean won stablecoin 'KRWQ' surpasses 1 billion won in trading volume one month after launch

IQ and Frax said on the 21st that KRWQ, a fiat-collateralized multichain stablecoin pegged 1:1 to the South Korean won (KRW), exceeded a cumulative trading volume of 1 billion won one month after its launch.

KRWQ is a stablecoin developed by IQ in collaboration with Frax, and the timing of this trading volume milestone coincides with the activation of AERO incentives on Aerodrome. As a result, the KRWQ–USDC liquidity pool on the Base (BASE) network has strengthened, and the project's initial market attraction has expanded.

IQ and Frax designed KRWQ by combining operational footing in the Korean market with Frax's stablecoin infrastructure. Frax's upcoming next-generation network, FraxNet, provides a scalable environment for asset-collateralized stablecoins, and KRWQ is a model that extends this to the Korean won.

KRWQ uses LayerZero (ZRO)'s OFT (Omnichain Fungible Token) standard and the Stargate bridge for multichain compatibility. This is designed to enable cross-chain movement based on integrated liquidity.

Navin Vethanayagam, IQ Chief Strategy Officer, said, "Exceeding 1 billion won in trading volume shortly after launch demonstrates clear market demand for a won stablecoin," and added, "With AERO incentives active, KRWQ will expand beyond the Base ecosystem."

Sam Kazemian, Frax Founder and CEO, said, "KRWQ's initial growth shows that fiat-collateralized stablecoins can naturally integrate with global decentralized finance (DeFi) liquidity."

Alex Lim, Head of APAC at LayerZero and Executive Director of the Asia Stablecoin Alliance, said, "Surpassing 1 billion won in trading volume shows growing global interest in Asia currency-based stablecoins," and added, "The multichain design is yielding immediate results."