Crypto Protocol Frax and AI Agent Platform IQ have partnered to launch a Korean won stableCoin on the coinbase-linked base blockchain.
In a statement viewed by Cointelegraph on Thursday, the two companies launched KRWQ, the first fully backed StableCoin winning base, along with a trading pair with the US Dollar StableCoin USDC (USDC) at the aerodrome exchange.
The pair also claims that KRWQ is the first multichain won-denominated stablecoin, as the token can be transferred across multiple networks using services from Crosschain Protocols Layerzero and Stargate Finance.
South Korea is ramping up its ambitions for local currency stablecoins, with plans for a regulatory framework For tokens and central banks pushing for the banking sector to lead their rollout.
The Bank of Korea’s push for banks to lead a stablecoin rollout has seen pushback from the crypto sector, with Kaia DLT Foundation chair Dr. Sangmin Seo recently telling Cointelegraph That the central bank should establish clear rules for StableCoin issuers that can “reduce financial risks and innovation.”
“KRWQ fills a critical gap in the market. While USD-backed tokens are dominant today, there is no credible won-denominated stablecoin that has launched at scale,” said IQ co-founder Navin Vethanayagam.
Frax and IQ said that KRWQ is designed to be fully regulatory compliant in South Korea, and was “developed in anticipation of the upcoming StableCoin law” that will be reviewed in the country’s national legislature.
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However, the duo said that StableCoin is not being sold or offered to South Korean residents and is “intended for use in global defi markets,” as lawmakers discuss the rules around the tokens.
Minting and Redemption of Tokens is also limited to “eligible KYC’D counterparties,” including exchanges, market makers, and integrated institutional partners. “
KRWQ’s launch comes a day after South Korea custodian bdacs said so plan to issue Its own winner backed stableCoin called KRW1 on Circle Internet Group’s new blockchain, Arc.
BDACS’ StableCoin first went live on the Avalanche Blockchain last month following a proof-of-concept with Woori Bank.
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