Frax USD (RWA-backed) fund
Overview
Frax USD (frxUSD), a fiat-redeemable stablecoin fully collateralized to maintain a 1:1 peg with the US dollar, is issued by the Frax Finance protocol. Its minting and redemption processes are managed by governance-approved custodians. Through the adoption of proposal FIP-418, Frax governance has authorized the use of BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) — a fund tokenized by Securitize and comprising cash, US Treasury bills, and repurchase agreements — as reserve collateral for frxUSD. Fiat on- and off-ramp services are provided by Paxos. A staked variant, sfrxUSD, distributes the underlying yield to its holders. frxUSD illustrates the wider trend of stablecoin reserves being backed by real-world assets.
Within The Counterparty graph, Frax USD (RWA-backed) connects to 1 tracked entity, most strongly to Ethereum.
Relations
Top connections in The Counterparty knowledge graph (confidence-weighted, 1 of 1 total).
| Relation | Connected entity | Confidence |
|---|---|---|
deployed_on | Ethereum | 85% |
Sources
Facts in this record were checked against the following. Where a claim is not covered here, the record states only what the graph holds.
Questions on the record
What backs frxUSD?
Frax governance approved cash-equivalent reserves as collateral for frxUSD via FIP-418. These reserves include the BlackRock BUIDL fund, which itself holds cash, US Treasury bills and repurchase agreements.
Who issues Frax USD?
Frax USD is issued by the Frax Finance protocol. Custodians approved by governance mint and redeem the token against fiat.