Crypto protocol Frax and artificial intelligence agent platform IQ have partnered to launch a stablecoin in the Korean won on the underlying blockchain linked to Coinbase.

In a statement seen by Cointelegraph on Thursday, the two companies launched KRWQ, the first stablecoin fully backed by the won on Base, along with a trading pair with the US dollar stablecoin USDC (USDC) on the Aerodrome exchange.

The pair also claims that KRWQ is the first multi-chain won-denominated stablecoin, where the token can be transferred across multiple networks using services from the crosschain protocols LayerZero and Stargate Finance.

South Korea is ramping up its ambitions for local currency stablecoins, with plans to establish a regulatory framework for digital currencies, and the central bank is pressuring the banking sector to lead the rollout.

The Bank of Korea's push for banks to lead the rollout of stablecoins has seen opposition from the cryptocurrency sector, with Kaia DLT Chairman Dr. Sangmin Seo recently telling Cointelegraph that the central bank should set clear rules for stablecoin issuers that can “reduce monetary risks and promote innovation.”

“KRWQ fills a critical gap in the market. While USD-backed stablecoins dominate today, no credible won-denominated stablecoin has been launched at scale,” said Naveen Vithanayagam, co-founder of IQ.

Frax and IQ said KRWQ was designed to be fully compliant with regulation in South Korea, and was “developed in anticipation of upcoming stablecoin legislation” that will be reviewed in the country’s national legislature.

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