KRWQ stablecoin buys tokenized South Korean government bonds

KRWQ, a won-based stablecoin jointly launched by decentralized AI and blockchain developer IQ and Frax Finance, has begun purchasing South Korean government bonds custodied at Shinhan Investment & Securities. The bonds were incorporated into the stablecoin's reserves in a tokenized form through EtherFuse's Stablebond framework, marking the first time South Korean government bonds have been included in the collateral structure of a won-based stablecoin. KRWQ operates on Frax's frxUSD infrastructure and uses an on-chain financial structure similar to other tokenized government bond strategies, such as BlackRock's U.S. Treasury-backed tokenized fund BUIDL and Superstate's USTB, though it incorporates the South Korean bonds through an independent reserve system. A representative for KRWQ stated that as stablecoin payments expand, so does the demand for high-quality reserve assets. They added that including government bonds enhances the stability and reliability of the reserves, potentially creating a new pathway for global digital capital to flow into the South Korean won and government bond markets.