KRWQ Removes Tokenized Korean Treasury Bonds from Reserve; Shinhan Securities Denies Partnership

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On September 10 (UTC+8), KRWQ, a Korean won stablecoin, removed tokenized Korean Treasury Bonds (KTB) from its reserves and now holds only USDC and frxUSD. KTB, issued by Shinhan Securities and Etherfuse and backed by short-term Korean government bonds, was removed at Shinhan’s request; Shinhan denied any partnership with KRWQ. This action follows ongoing Federal Reserve developments and regulatory scrutiny over KRWQ’s previously suspended DEX-linked gift card service.

According to ME News, on September 10 (UTC+8), the Korean won stablecoin KRWQ has removed the KTB tokenized South Korean government bonds from its reserve assets, and its reserves now consist solely of USDC and frxUSD. KTB, launched by Shinhan Securities and the RWA platform Etherfuse, is backed by South Korean government bonds with maturities of one year or less. KRWQ added KTB to its reserves in February and claimed to be the first won stablecoin to use tokenized South Korean government bonds as reserve assets. Shinhan Securities stated that upon learning KTB was being used as a reserve asset by KRWQ, it identified potential issues and requested Etherfuse to remove it, emphasizing that “there is no partnership with KRWQ.” Previously, KRWQ faced scrutiny over anti-money laundering risks due to its ability to acquire tokens via DEXs without KYC and purchase South Korean gift cards, leading to the temporary suspension of the related gift card service. (Source: Foresight News)

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