Frax and IQ Introduce KRWQ, a Korean Won-Pegged Stablecoin on Base

Partnership Announcement: Crypto protocol Frax and AI agent platform IQ have launched KRWQ, the first fully-backed Korean won stablecoin on the Coinbase-linked Base blockchain, alongside a trading pair with USDC on the Aerodrome exchange.

Regulatory Compliance: KRWQ is designed to be fully compliant with South Korean regulations and anticipates forthcoming stablecoin legislation, although it is not marketed to South Korean residents and is intended for global DeFi markets.

Market Gap: The launch of KRWQ addresses the lack of credible won-denominated stablecoins in the market, as USD-backed stablecoins currently dominate.

Industry Pushback: The Bank of Korea's initiative for banks to lead stablecoin rollouts has faced criticism from the crypto sector, emphasizing the need for clear regulations to minimize risks and encourage innovation.