This marks the first time tokenized Korean government bonds have been used to back a Korean Won stablecoin
SEOUL, South Korea, Feb. 24, 2026 /PRNewswire/ — IQ announced today that KRWQ, the first Korean won stablecoin, has begun acquiring Korean government bonds held at Shinhan Securities. The bonds are tokenized through Etherfuse‘s Stablebond framework and held by Shinhan Securities, one of South Korea’s largest securities firms. The transaction marks the first time tokenized Korean government bonds have been incorporated into the collateral structure of a KRW-denominated stablecoin. This continues the quick expansion of the KRWQ stablecoin in multiple verticals further extending its first-mover advantage.
By incorporating Korean sovereign debt into its onchain reserve framework, KRWQ establishes a direct connection between blockchain based KRW liquidity and Korea’s government bond market through one of the most reputable institutions in South Korea, Shinhan Securities. As stablecoin settlement grows, demand for high-quality reserve assets grows with it. KRWQ’s growing dominance in the stablecoin market could dramatically expand access to the Won, strengthening the Korean national economy by bringing an influx of foreign capital into Korea’s currency and bond market.
“We designed KRWQ to be a trusted KRW settlement asset backed by transparent, high-quality reserves,” said Dave Shin, Chief Operating Officer of KRWQ. “Purchasing tokenized Korean government bonds issued through Etherfuse and held by Shinhan Securities strengthens the reserve profile of KRWQ and anchors it to the same sovereign instruments that underpin Korea’s capital markets.”
KRWQ was created by IQ with Frax serving as its stablecoin infrastructure partner. KRWQ’s cash flows and fees go to the IQ token allowing anyone to own an early stake in the world’s first Korean won stablecoin. Since launching in Seoul in 2018, IQ has established a strong presence in the Korean digital asset market, including listings on Upbit, Bithumb, and other leading exchanges. KRWQ extends that foundation by introducing a KRW-denominated stablecoin engineered for transparent reserves, composability, and cross-border liquidity.
“KRWQ is the first Korean won stablecoin to hold tokenized Korean government bonds as part of its reserves,” said Navin Vethanayagam, Chief Brain of IQ. “As financial activity increasingly settles on-chain, the assets backing that liquidity matter. By integrating Korean government bonds into a blockchain-native reserve structure, we create a new, structural source of demand for Korean sovereign debt and connect it to global digital capital markets.”
KRWQ utilizes Frax’s stablecoin infrastructure, anchored by frxUSD. Frax’s platform supports tokenized U.S. Treasury strategies including BlackRock’s BUIDL fund via Securitize and Superstate’s USTB fund, as well as integrations with Stripe, Bridge, and WisdomTree. KRWQ operates on this infrastructure while holding Korean government bonds within its own reserve framework.
Shinhan Securities is not involved in the issuance structure, pricing, sales, or distribution of the KRWQ stablecoin or the stable bonds issued by Etherfuse. Shinhan Securities also does not provide guarantees or investment recommendations for either of these products. Shinhan Securities is not an affiliate, partner, or directly involved in the management or fiduciary duties of the KRWQ stablecoin. The KRWQ stablecoin and the Etherfuse stablebonds are not offered or sold in Korea, and no subscription or trading is permitted for domestic investors.
About KRWQ
KRWQ is the first fiat-backed stablecoin pegged 1:1 to the Korean won while cash flows and fees go to the IQ token allowing anyone to own an early stake in the world’s first Korean Won stablecoin. Developed by IQ in partnership with Frax, KRWQ brings the Korean won on chain as a secure, compliant, and scalable settlement layer for global markets. KRWQ is built on proven infrastructure with a controlled mint and redeem framework designed for exchanges and market makers.
For more information, visit www.KRWQ.cash.
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