Frax USD

In December 2024, Frax Finance introduced Frax USD (frxUSD) and Staked Frax USD (sfrxUSD) as part of an upgrade to the Frax stablecoin system, detailed in FIP-419. frxUSD is designed as a more modular and usable stablecoin aligned with Frax Finance's goals of decentralization and stability. A key feature of frxUSD is its integration with Paxos, enabling users to easily convert frxUSD to fiat currency. Furthermore, Frax Finance, through FinresPBC, aims to gain direct access to the US Federal Reserve (FMA) to bolster frxUSD's stability and trustworthiness. By leveraging FinresPBC's existing Treasury bill access, frxUSD will also be backed by Treasury bills, enhancing its reliability and expanding its utility.