IQ and Frax launch KRW-pegged stablecoin 'KRWQ'

Decentralized artificial intelligence (AI) and blockchain technology developer IQ has partnered with Frax to launch the KRW-pegged stablecoin 'KRWQ'.

On the 30th (local time), The Block reported that the two companies said in a press release, "KRWQ is the first KRW-pegged stablecoin launched on Coinbase's Ethereum Layer 2 network Base. Currently, the KRWQ-USDC trading pair has been opened on Aerodrome."

KRWQ is regarded as the first KRW-pegged token capable of multi-chain transfers by utilizing LayerZero's "Omnichain Fungible Token (OFT)" standard and the Stargate bridge. Navin Vethanayagam, IQ's CEO, said, "KRWQ is a stablecoin that fills an important gap in the market," adding, "While dollar-based stablecoins dominate the market, a reliable KRW stablecoin has not existed until now."

IQ also said it plans to incorporate regulatory response and compliance know-how accumulated from Frax's stablecoin "frxUSD" into the KRWQ design to support institutional investor adoption and due diligence.

Meanwhile, KRWQ is currently not traded or promoted within South Korea. The two companies explained, "As legislation related to stablecoins in Korea is still underway, KRWQ issuance and redemption will be restricted and carried out only for eligible institutions such as exchanges, market makers, and institutional partners."