KRWQ Korean Won Stablecoin Expands to Solana for DeFi

The expansion, reported by The Block on Tuesday, targets perpetual futures, on-chain FX, and cross-margin trading on Solana. IQ (IQAICOM) issues the token in partnership with Frax Finance.

What Is KRWQ

KRWQ is a fiat-backed stablecoin pegged 1:1 to the South Korean won. It launched on October 30, 2025, on Base as the first KRW stable on Coinbase’s Ethereum L2.

The token uses LayerZero’s Omnichain Fungible Token (OFT) standard. As a result, it operates across multiple chains without traditional bridges. On Solana, KRWQ will function as an SPL token.

Reserves consist of Korean government bonds held through Shinhan Securities. According to KRWQ’s official site, the token maintains 100%+ over-collateralization. Real-time on-chain transparency and monthly attestations back the peg.

Why KRWQ on Solana Matters

The South Korean won generates roughly $40 billion in daily spot volume. On top of that, the offshore KRW Non-Deliverable Forward (NDF) market adds about $60 billion per day. Combined, that represents over $100 billion in daily KRW liquidity.

Almost all of that volume currently flows through traditional OTC channels. KRWQ aims to bring a portion of it on-chain through a transparent settlement layer.

“Solana provides the performance and ecosystem depth needed to scale KRW liquidity onchain,” said Dave Shin, COO of KRWQ, in a statement shared with The Block. “We are seeing clear demand for non-USD trading pairs, particularly in derivatives.”

Use Cases on Solana

The Solana deployment targets several specific use cases. These include KRW-denominated perpetual futures and on-chain FX markets. Cross-margin trading between KRW and USD stablecoins is also planned.

Arbitrage between on-chain and off-chain KRW markets is another key focus. Institutional and algorithmic strategies stand to benefit from Solana’s high throughput and low fees.

KRWQ already trades on EDX Markets, where it listed in March 2026. That listing marked the world’s first KRW stablecoin perpetual contracts.

Current Market Position

KRWQ currently holds a market cap of about $1.35 million, according to CoinGecko data. Daily trading volume sits around $200,000. Total value locked across existing chains stays in the $1-2 million range, per DefiLlama.

Those figures are modest next to Solana’s $15 billion-plus stablecoin market cap. USDC, USDT, and PYUSD dominate that total. No Solana pool TVL for KRWQ appears on DefiLlama yet.

No Solana mint address or SPL token contract has been disclosed. Early DEX listings on Jupiter, Raydium, or Orca are not yet visible either.

KRWQ vs. Major Fiat Stablecoins on Solana

Regulatory Landscape and Risks

KRWQ operates as an offshore product. It is not currently offered to South Korean residents. South Korea’s Digital Asset Basic Act remains under development, and stablecoins face strict regulatory scrutiny.

The offshore-only model limits direct access to Korean retail capital. Whether traditional NDF volume will actually migrate on-chain remains an open question. Some analysts on X noted that KRWQ’s small market cap limits immediate impact.

A separate project called TokenSquare/BSV KRWQ also launched in early May 2026. That project is distinct from the IQ/Frax-issued KRWQ but shares the same ticker. This could cause confusion in the market.

Timeline and Background

KRWQ’s path to Solana follows a series of milestones. In October 2025, the Solana Foundation signed a separate MoU with Wavebridge for KRW stablecoin infrastructure. That same month, KRWQ launched on Base with a KRWQ-USDC pool on Aerodrome.

By November 2025, KRWQ crossed 1 billion won in trading volume. The EDX Markets listing followed in March 2026. Today’s announcement represents the next step in a multi-chain rollout.

According to the IQ team, KRWQ aims to build “the foundation for a global, continuously traded Korean won market.” The goal spans both institutional and on-chain venues.

What Comes Next for KRWQ on Solana

The exact go-live date for KRWQ trading on Solana has not been disclosed. Initial liquidity commitments and TVL targets also remain unannounced.

Traders should watch for the Solana mint address, initial DEX listings, and reserve reports. The gap between KRWQ’s vision and its $1.35 million market cap will shape how quickly institutional interest develops.

This article is for informational purposes only and does not constitute financial advice.