First Korean Won-Pegged Stablecoin Launched on Base Network

IQ and Frax launched KRWQ, the first Korean won stablecoin on Base.

IQ and Frax have launched the “stablecoin” KRWQ, pegged to the South Korean won. This asset marks the first such token in the L2 solution Base, reports The Block.

KRWQ is the first Korean won 🇰🇷 stablecoin on Base. Launched by @IQAICOM and @fraxfinance.

KRWQ is the first multichain KRW stable leveraging @LayerZero_Core‘s OFT standard and the first tradeable KRW stable with liquidity on @AerodromeFi. https://t.co/P7B6X3Zayq

— KRWQ.cash (@KrwqCash) October 30, 2025

The team has already added the KRWQ-USDC pair to the decentralized exchange Aerodrome. The coin uses the Omnichain Fungible Token standard from LayerZero and the Stargate bridge for cross-blockchain transfers.

“KRWQ will fill an important market gap. Today, USD-based stablecoins dominate, but no reliable won-pegged asset has been launched on a large scale,” stated IQ’s head, Navin Vethanayagam.

Currently, the stablecoin is not available to South Korean residents, as the country has yet to enact legislation for such assets. Issuance and redemption of KRWQ are available only to authorized partners: exchanges, market makers, and institutional companies.

IQ aims to make KRWQ the first fully compliant stablecoin in Korea. The team is considering a bill that local lawmakers and financial authorities are developing.

Yen-Based Stablecoin

Japanese startup JPYC has launched the world’s first “stablecoin” pegged to the yen. The asset is fully backed by national savings and government bonds, reports Reuters.

The company plans to issue JPYC worth 10 trillion yen ($66 billion) over three years and aims for widespread adoption beyond Japan. To attract users, the startup will not charge transaction fees. JPYC expects to earn its primary revenue from interest on government bonds.

Project leader Noritaka Okabe added that they are open to partnerships to enhance “global compatibility.”

Former Bank of Japan employee Tomoyuki Shimoda believes yen-based stablecoins will not achieve the popularity of USD-pegged assets. He estimates that widespread adoption of JPYC in Japan could take at least two to three years, even with the involvement of major banks.

Bank of Japan Deputy Governor Reizo Himino noted that “stablecoins” could become key players in the global payment system and partially replace bank deposits. He urged global regulators to adapt to new conditions.

Earlier in October, media reported that Japan’s three largest banks are preparing a joint stablecoin issuance.