Frax Positions frxUSD as Third Major Stablecoin Alongside USDC and USDT
Frax Positions frxUSD as Third Major Stablecoin Alongside USDC and USDT
🎯 The Third Stablecoin
Frax is positioning frxUSD to become the third default stablecoin in the market, alongside established players USDC and USDT.
Key developments:
- The project acknowledges that while many stablecoins will launch, only a few will achieve standard status
- Frax is forming partnerships with multiple projects to establish frxUSD's position
- The strategy focuses on integration with on-chain neobanks as a key distribution channel
Infrastructure approach:
- FraxNet serves dual purposes as both a neobank and underlying infrastructure
- The platform is designed to power other crypto neobanks, not just operate independently
- This infrastructure-first strategy aims to embed frxUSD across the emerging neobank sector
The announcement signals Frax's ambition to compete in the increasingly crowded stablecoin market by focusing on strategic partnerships and infrastructure positioning rather than direct consumer adoption alone.
Stablecoin proliferation is inevitable. Many will launch, few will become the standard. frxUSD is designed to be the third default alongside USDC and USDT. We’re partnering with many of the projects on this map to achieve that goal.
There have been 59 new major Stablecoins launched in 2025
The proliferation of stablecoins will accelerate in 2026 through on-chain neobanks. frxUSD is set to become a default stablecoin in this sector. FraxNet is not only a neobank but also infrastructure that can enhance any crypto neobank. We will power many of these platforms.
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Frax Highlights sfrxUSD's Stable Yield Performance Amid Market Volatility
Frax Finance is promoting **sfrxUSD** as a reliable yield option during volatile market conditions. **Key Points:** - sfrxUSD designed to offer optimal risk-adjusted stable yield on-chain - Consistently outperforms APY of major competing stablecoin options - Backed by team with 5-year security track record - Positioned as "set-it-and-forget-it" savings solution The protocol emphasizes sfrxUSD's performance track record as markets experience turbulence. Users can access the yield product at [frax.com/earn](http://frax.com/earn). Frax continues to differentiate its yield-bearing stablecoin in an increasingly crowded market of similar products, focusing on security and consistent returns rather than maximum APY.
Avant Protocol Integrates frxUSD as PegKeeper
Avant Protocol has selected frxUSD as their PegKeeper solution for their avUSD stablecoin. **Key Details:** - Avant's avUSD offers adaptive yield with institutional-grade security - Available across multiple blockchain networks - New liquidity pools launched on [Curve Finance](https://www.curve.finance) (Ethereum) and Etherex (Linea) This follows a recent frxUSD PegKeeper pool launch with Origin Protocol's OUSD, which benefits from dual yield incentives from both frxUSD and OUSD.
🇰🇷 Korean Won Stablecoin KRWQ Joins FraxNet for Global Settlement
**KRWQ**, the most traded Korean won stablecoin, has integrated with **FraxNet** to create an efficient KRW-USD settlement corridor. **Key developments:** - Built by IQ AI in collaboration with Frax using frxUSD infrastructure - Partners include BlackRock, Bridge, Superstate, and WisdomTree - Listed on major Korean exchanges: Upbit and Bithumb **Integration benefits:** - Unified, capital-efficient KRWUSD corridor for exchanges and DeFi platforms - New KRWQ/frxUSD liquidity pools, including first pool on Uniswap v4 - Enhanced global KRW settlement capabilities on-chain The integration leverages Frax's GENIUS-compatible network to provide deeper liquidity and streamlined cross-border settlement for Korean won transactions. [Read full press release](https://www.prnewswire.com/news-releases/krwq-the-most-traded-korean-won-stablecoin-joins-fraxnets-genius-compatible-network-302638607.html?tc=eml_cleartime)
frxUSD Joins Elite Group as DEIN Insurance Platform Launches with Only Three Supported Stablecoins
**frxUSD selected for exclusive DeFi insurance launch** DEIN.fi has chosen only **three stablecoins** for its insurance platform launch: - frxUSD - USDC - USDT This partnership positions frxUSD as **collateral** for DeFi insurance products, marking a significant step toward making decentralized finance safer for users. The collaboration aligns with Frax's mission to enhance DeFi security and demonstrates growing institutional confidence in frxUSD's stability and utility.
🔥 New liquidity pool
**New incentives launched** for the frxUSD/wBLT liquidity pool on Deli Swap by BMX DeFi. **Key benefits:** - frxUSD's revenue-sharing model offers better capital efficiency than USDC/USDT - Perfect pairing with wBLT's productive liquidity vault - Now live on Base network **Why it matters:** This combination leverages frxUSD's Treasury-backed rewards system with wBLT's yield-generating capabilities, creating a more attractive option for liquidity providers. [Start providing liquidity](https://www.deliswap.com/#/explore/pools/base/0x3779354f8c0065d70f35115508d040008ccf2e6a246d80c4db994e4684e2f72a?chain=base&from=0x4E74D4Db6c0726ccded4656d0BCE448876BB4C7A&tab=swap)