frxUSD, issued by Financial Reserves and Asset Exploration Inc (FinresPBC) and tokenized by the Frax Protocol smart contracts, is a fiat-backed stablecoin that maintains a 1:1 peg to the U.S. dollar (USD) through governance-approved enshrined custodians [S1][S2][S3].

Holders receive a token redeemable 1:1 for USD, backed by cash-equivalent reserves held by enshrined custodians, predominantly tokenized U.S. Treasury fund instruments such as BlackRock USD Institutional Digital Liquidity Fund (BUIDL) via Securitize and Superstate USTB [S3][S4]. frxUSD itself passes no yield to holders; the staked variant sfrxUSD accrues yield separately. Frax charges no mint or redeem fee; Securitize (BUIDL) charges 0.15%, while Superstate, Agora, Centrifuge, and WisdomTree charge none [S3].

FinresPBC, a public benefit corporation referred to under governance proposal FIP-432 as FRAX Inc, is responsible for regulatory operations, compliance, and collateral management of frxUSD [S1][S2]. It is pursuing a U.S. payment stablecoin charter under the proposed GENIUS Act and STABLE Act [S2]. frxUSD remains fully redeemable for fiat through FinresPBC or an authorized enshrined custodian [S2]. The frxUSDCustodian contracts are permissionless, though underlying reserve tokens may impose whitelists or KYC; the USTB asset restricts holding to KYC'd Qualified Purchasers via an allowlist [S3][S4]. Reserves are held in segregated brokerage accounts, not rehypothecated or pledged [S1].

frxUSD uses a modified ERC-20 contract and is natively supported on Ethereum and Fraxtal, represented as a LayerZero Omnichain Fungible Token on other networks including Solana, Linea, and Sonic [S5][S3]. It is minted when a custodian deposits 1.00 USD of provable reserves into a frxUSDCustodian contract and burned on redemption, settling intra-business-day or next business day [S3].

<Sources
  retrievedAt="2026-06-21"
  items={[
    { id: "S1", url: "https://gov.frax.finance/t/fip-432-transfer-of-compliance-collateral-management-of-frxusd-to-frax-inc/3748" },
    { id: "S2", url: "https://gov.frax.finance/t/fip-430-preparation-for-frxusd-payment-stablecoin-charter-compliance/3698" },
    { id: "S3", url: "https://docs.frax.finance/?ask=What%20is%20frxUSD%20and%20enshrined%20custodians" },
    { id: "S4", url: "https://gov.frax.finance/t/fip-421-ustb-as-collateral-and-custodian-asset-for-frxusd/3539" },
    { id: "S5", url: "https://docs.frax.finance/" },
  ]}
/>


Stablecoins

Users deposit funds into Frax Finance and receive frxUSD stablecoin (previously FRAX).

Frax Finance is the principal architect of frxUSD - a crypto collateralized stablecoin pegged to the US dollar. Frax Finance was founded by Sam Kazemian, Stephen Moore, Jason Huoan & Travis Moore and launched in 2019.

FRAX (previously FXS) tokenholders own and govern the Frax Finance protocol.

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Stablecoin issuers

Frax Stablecoin

Frax USD (frxUSD) is a U.S. dollar stablecoin issued by Frax Stablecoin through Financial Reserves and Asset Exploration Inc.

Reserves are held in money market funds, other assets, bank deposits, and crypto assets, in accounts segregated from the issuer's own funds.

They sit with BitGo Trust and Erebor Bank.

Holders can mint and redeem directly with Frax Stablecoin in USDC, USDT, PYUSD, USD, and tokenized treasuries.

Financial Reserves and Asset Exploration Inc is incorporated in the United States.

frxUSD has been issued on public blockchains since February 2024 and is native to Fraxtal and Ethereum, with bridged versions on 21 more.

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