Frax, IQ launch Korean won-pegged KRWQ on Base amid stablecoin push

Crypto protocol Frax and AI cause level IQ person partnered to motorboat a Korean won stablecoin connected the Coinbase-linked Base blockchain.

In a connection viewed by Cointelegraph connected Thursday, the 2 companies launched KRWQ, the archetypal fully-backed won stablecoin connected Base, alongside a trading brace with the US dollar stablecoin USDC (USDC) connected the Aerodrome exchange.

The brace besides claims KRWQ is the archetypal multichain won-denominated stablecoin, arsenic the token tin beryllium transferred crossed aggregate networks utilizing services from crosschain protocols LayerZero and Stargate Finance.

South Korea has been ramping up its ambitions for section currency stablecoins, with plans for a regulatory framework for the tokens and the cardinal slope pushing for the banking assemblage to pb their rollout.

The Bank of Korea’s propulsion for banks to pb a stablecoin rollout has seen pushback from the crypto sector, with Kaia DLT Foundation seat Dr. Sangmin Seo recently telling Cointelegraph that the cardinal slope should found wide rules for stablecoin issuers that tin “minimize monetary risks and foster innovation.”

“KRWQ fills a captious spread successful the market. While USD-backed stablecoins predominate today, nary credible won-denominated stablecoin has ever launched astatine scale,” said IQ co-founder Navin Vethanayagam.

Source: Navin Vethanayagam

Frax and IQ said that KRWQ was designed to beryllium afloat regulatory-compliant successful South Korea, and was “developed successful anticipation of the forthcoming stablecoin legislation” to beryllium reviewed successful the country’s nationalist legislature.

Related: Venezuela’s stablecoin usage lawsuit grows amid warfare threats, ongoing sanctions 

However, the duo said that the stablecoin is not being marketed oregon offered to South Korean residents and is “intended for usage successful planetary DeFi markets,” arsenic lawmakers are inactive discussing rules astir the tokens.

Minting and redemption of the token is besides constricted to “eligible KYC’d counterparties,” including exchanges, marketplace makers, and integrated organization partners.”

KRWQ’s motorboat comes a time aft South Korean crypto custodian BDACS said it plans to issue its ain won-backed stablecoin called KRW1 connected Circle net Group’s caller blockchain, Arc.

BDACS’ stablecoin archetypal went unrecorded connected the Avalanche blockchain past period pursuing a proof-of-concept with Woori Bank.

Asia Express: Bitcoiner enactment trap extortion? BTS firm’s blockchain disaster