Complete Beginner Guide

KRW Stablecoins
From A to Z

New to stablecoins? From basic concepts to advantages of KRW stablecoins, purchasing, and usage. Explained simply for everyone from teens to seniors.

2026-01-22
1What is Cryptocurrency?

Cryptocurrency is a digital asset based on blockchain technology, traded safely online without central institutions like banks. Blockchain ensures transparency and security by storing transaction records on a distributed network.

Key Features

  • Decentralization: No central control, enabling direct p2p transactions.
  • Transparency: All transactions are publicly recorded on the blockchain.
  • Fast Remittance: Fast and cheap cross-border transfers.
  • Volatility: Assets like Bitcoin fluctuate greatly, posing high investment risk.

Examples

  • Bitcoin (BTC): The first cryptocurrency, known as digital gold.
  • Ethereum (ETH): Platform supporting smart contracts.

Use Cases

Used for investment, remittance, and payment, but stablecoins emerged due to high volatility.

2Features of Stablecoins

Stablecoins are cryptocurrencies pegged to fiat (e.g., KRW, USD) or assets to minimize price volatility.

Key Features

  • Pegged Value: 1 Stablecoin = 1 KRW (or USD), maintaining 1
  • Practical Use: Used for remittances, payments, and asset holding.
  • Price Stability: Low volatility makes them suitable for daily use.

Types of Stablecoins

TypeDescriptionExample
Fiat-CollateralizedBacked by fiat (USD, KRW), maintaining 1:1 valueTether(USDT), USD Coin(USDC)
Commodity-CollateralizedBacked by physical assets like gold or real estateTether Gold, Dignity Gold
Crypto-CollateralizedBacked by other crypto, over-collateralizedDai(DAI)
AlgorithmicSupply adjusted by algorithm, no collateralTerraUSD

Use Cases

  • Remittance: Faster and cheaper cross-border transfers.
  • Payment: Accepted by some online merchants
  • Exchange: Holding assets while avoiding volatility
  • DeFi: Lending, staking, and financial services View DeFi Guide →
3Benefits of KRW Stablecoins

KRW Stablecoins are pegged 1:1 to the Korean Won, making them familiar and convenient for domestic users.

Key Advantages

  • Lower Fees: Cheaper than traditional bank remittances for overseas transfers.
  • Easy Access: Can be easily traded on domestic exchanges.
  • Minimizes Risk: Maintains price stability through 1
4Future of KRW Stablecoins
  • Bank-led Issuance: Potential launch by 8-bank consortium including iM Bank.
  • Gov Support: Digital Asset Basic Act to foster market.
  • Usage: Increased usage in payments and remittances.
  • Timeline: Expected commercialization in late 2025 or early 2026.
5KRWQ: New KRW Stablecoin

In Oct 2025, IQ and Frax Finance launched KRWQ, a new KRW stablecoin.

Summary

  • 1:1 Peg: 1 KRWQ = 1 KRW
  • Safe Collateral: Over 100% backed via BlackRock funds
  • Strict Issuance: Only verified institutions can mint
  • Multi-chain: Built with LayerZero for scalability

1. Collateral & Safety

Uses over-collateralization, holding more KRW assets than issued coins.

2. Technology

  • Starting on Base & Ethereum, expanding via LayerZero.

3. Partnerships

  • IQ & Frax, Aerodrome, BrainDAO, etc.

Expected Effect

Will enhance KRW utility in cross-border remittance, B2B payments, and DeFi.

6Maroo: Korean Layer 1

Maroo is a new blockchain mainnet optimized for the Korean economy and regulatory environment. It solves the complexity of existing blockchains and uses KRW stablecoin for gas fees.

Key Features

  • KRW Native: Uses KRW stablecoin (OKRW) for gas fees
  • Compliance: Provides a safe trading environment observing regulations
  • AI Friendly: Optimal infrastructure for the AI agent economy

Why is it important?

Users pay fees in KRW value without complex calculations, making it convenient for enterprises and general users.

7Japan JPYC Case Study

Japan launched JPYC, the first regulated Yen stablecoin, in Oct 2025.

Key Features of JPYC

  • Fully Collateralized: 101% backed by deposits & bonds
  • Gov Approved: FSA approved
  • Bank Coop: Mega-bank partnerships
  • Free Fees: Initial zero fees

Implications for Korea

  • Clear regulations boost trust
  • Bank participation ensures stability
  • Korea-Japan cooperation potential

Learn more about JPYC

Check issuance structure and mechanisms

8Latest KRW Stablecoin News

Key Regulations & News as of Jan 22, 2026

Phase 2 Digital Asset Act Delayed

Legislation on stablecoins is expected to be fully implemented in 2026 due to ongoing discussions between FSC and BOK.

Corporate Crypto Investment Allowed

From Jan 2026, corporations are allowed to invest up to 5% of equity in digital assets.

Domestic ICOs to be Permitted

The Phase 2 bill is expected to allow domestic ICOs for the first time in 8 years.

Stricter Exchange Governance

Major shareholder eligibility screening for crypto exchanges will be strengthened.

9How to Buy Stablecoins

Since KRW stablecoins are not yet commercialized, here is how to buy USD stablecoins (USDT/USDC).

Purchase Steps

  1. Select Exchange (Upbit, Bithumb)
  2. Verify Account (KYC)
  3. Deposit KRW
  4. Buy Stablecoin
  5. Store in Wallet

Future Outlook

Similar procedures expected for KRW stablecoins upon launch.

10How to Use Stablecoins

Used for various purposes.

  • Remittance: Fast, cheap cross-border transfers
  • Payment: Online/offline payments
  • Exchange: Asset holding and trading
  • DeFi: Yield generation View DeFi Guide →
11Investment Precautions

Risks exist, proceed with caution.

  • Check Issuer Credibility
  • Check Regulatory Compliance
  • Check Price Stability

Safety Checklist

  • Collateral Transparency
  • Regular Audit Reports
  • Regulatory Compliance
12Explanation by Age Group

For Teens

It's like game money used on the internet. Value doesn't change, so it's safe to use.

For 30s

Digital asset pegged 1:1 to KRW, useful for stable investment, remittance, and payments.

For 50s

Digital form of cash. Send money overseas faster and cheaper than banks.

13Conclusion

KRW Stablecoins are the future of Korean digital finance. Commercialization is near with iM Bank and Naver Pay.

  • Teens: Games, Shopping
  • 30s: Investment, Remittance
  • 50s: Convenient Payments

Always check credibility and regulations before investing.

KRW Stablecoins From A to Z | KRW Stable