IQ·FRAX launch won-based multi-chain stablecoin 'KRWQ'

Web3 infrastructure firm IQ said on the 31st that it has launched the Korean won (KRW)-pegged stablecoin 'KRWQ' in partnership with FRAX.

KRWQ is a fiat-collateralized, Korean won-pegged multi-chain stablecoin developed as a regulatory-compliant model that aligns with proposed stablecoin legislation in South Korea. It will be used for payments and liquidity management in the decentralized finance (DeFi) market and will not be sold or marketed to domestic retail investors.

KRWQ currently supports trading on Coinbase's Ethereum Layer 2 network 'Base'. It will also list a KRWQ–USDC trading pair on the decentralized exchange (DEX) Aerodrome. A KRWQ–USDC liquidity pool has already been opened on Aerodrome, and BrainDAO, which manages assets worth US$40 million, plans to increase liquidity provision as demand grows. Support will also be provided for cross-chain asset transfers and pooled liquidity using LayerZero's self-developed token standard 'OFT (Omnichain Fungible Token)' and the Stargate bridge.

Navin Vethanayagam, IQ's Chief Strategy Officer (Chief Brain), said, "KRWQ is an important first step in filling a gap in the market," adding, "There are many dollar-pegged stablecoins, but there have been no large-scale Korean won stablecoins. We are proud to bring the won on-chain together with FRAX."

Sam Kazemian, founder and CEO of FRAX, said, "FRAX has focused on building a stable and scalable stablecoin infrastructure," and added, "Implementing a Korean won-pegged model in collaboration with IQ is a new turning point for the global DeFi market."

Bryan Pellegrino, co-founder and CEO of LayerZero Labs, said, "KRWQ is an example that fiat-backed assets can exist natively across chains," adding, "IQ and FRAX are leading that transition."