daddy.frax

Exactly what the next wave of onchain money needs to see. Institutional capital is lining up to upgrade onto onchain rails. In that new world, what matters most is security you can track and verify. First, the reserves backing $frxUSD, verified on @DefiLlama. Then last week, @zellic_io audited the contracts behind frxUSD. Today, @CODESPECT audited the router holding your approvals. Zero critical findings, both times. Years of experience, not just with stablecoins, but with securing user funds onchain. OGs, setting the standard!

Meet $frxUSD, a better dollar for the digital age 🇺🇸 frxUSD, issued by @fraxfinance, is a stablecoin built to the GENIUS Act standard and backed by real-world assets: today 97% in tokenized Treasury funds like BlackRock BUIDL, WisdomTree WTGXX and Superstate USTB, verified onchain. Those Treasuries earn, and through FraxNet, verified users and businesses share in the T-bill yield. Onramp and offramp with your bank, or move into major onchain assets 24/7. It moves natively across 20+ chains. And anyone can launch their own branded stablecoin on FraxNet, fully backed by frxUSD. USSD on @SonicLabs was the first. A digital dollar to trust, earn with and build on.

In TradFi, levering into a private credit fund takes a prime broker and a stack of paperwork. Onchain, it takes $frxUSD and one transaction. Sep 25, a user opened a Credit Account on @GearboxProtocol with $60.2K of their own frxUSD and took one-click 3.8x leverage. In that same transaction, Gearbox lent them $168.6K more frxUSD, and $228.6K went into @MidasRWA mF-ONE, a tokenized Fasanara fund focused on private credit. No DEX, no slippage. frxUSD can mint mF-ONE directly, one of only two stablecoins with that status alongside USDC, so the dollars went straight into the fund: 228.6K frxUSD in, 203,168 new mF-ONE out. On Oct 1, the user added $25K of their own and borrowed $70.1K more, minting another 84,339 mF-ONE. Today: $85.2K of their own, $240.1K borrowed, $326.5K in mF-ONE. The fund earns 7.48%, the loan costs 4.43%, and at 3.8x that spread turns into 15.74% a year on their own capital. Roughly double what mF-ONE pays on its own. 46 days in, the position is up about $1,150. We think frxUSD is the right unit for this: a trusted dollar that subscribes directly to institutional funds and plugs into battle-tested protocols, so one transaction does the job of a prime broker.

POV: The digital dollar era is 70 days away and you already hold frxUSD.

76 days until GENIUS takes effect. Here’s how we see it, and why we think @FraxFinance is one of the most prepared issuers for what’s coming. First, a reality check. The OCC finalized its rules on Oct 21, but applications haven’t opened yet. No stablecoin is officially “GENIUS-compliant” today, whatever the marketing says. What a stablecoin can do right now is show its work. Back in March 2025, while GENIUS was still a draft, @samkazemian was on the Hill reading it cover to cover and working with @BlockchainAssn and @DanSpuller on revisions. Some of those edits, he says, made it into the bill’s wording. $frxUSD was built with this exact future in mind. Plenty of issuers are only now reading the rulebook. Sam helped shape it before it was one. So here’s the work. frxUSD has a uniquely clean reserve structure. It’s 103.44% backed, almost entirely by tokenized Treasury funds (WisdomTree’s WTGXX, BlackRock’s BUIDL, USTB) plus cash at Erebor. @DefiLlama independently verifies the full reserves live, onchain and offchain. GENIUS asks for a monthly report. frxUSD’s reserves can be checked any day. The exits are open. Redeem 1:1 onchain any time, or cash out to a U.S. bank account through FraxNet. And the compliance plumbing is already built. FraxNet’s identity layer means you verify once and it works across partners, and the frxUSD contract can freeze tokens on a lawful order. Some requirements only kick in with a license, like the monthly auditor exam and the capital rules. Frax has said it’s applying for a GENIUS license, so the application can go in as soon as the window opens. Built for GENIUS. Licensed is the next step. Few stablecoins are this ready. And honestly, we still don’t think most people get what this means once it’s live. From Jan 18, issuing a payment stablecoin in the U.S. takes approval. By July 2028, platforms can only offer approved ones to U.S. users. The ones that make it through become regulated digital dollars that banks, businesses and apps can build on. Soon your parents will pay with stablecoins. They’ll use the ones that showed their work. Our take as the Frax Force community, not an official Frax statement. Not a compliance claim, not financial or legal advice.

We're going live in less than two hours with our ONCHAIN CA$H show. Tonight we're covering a hand-picked set of topics: Binance, Aero on Ethereum, the state of GENIUS ACT, Frax ecosystem news. Plus market TA from a FraxForce member. Join us at 8 PM CET, live here on X.

1/ Today we upgraded the ONCHAIN CA$H app. We refined and extended a lot: the frxUSD hub, PegKeeper dashboard and a brand new Content Studio. Essentially all the data you need around $frxUSD in one place, with even more already in the pipeline… Built by the community, for the community!

"You can't compete on yield alone. You have to compete on usefulness and utility." The stablecoin market is heading into the trillions, and only fully backed, compliant stablecoins can reach it. @SeanKelleyX talking on an X Space hosted by Fent from @giga_dex.