{"id":"frxusd","title":"frxUSD","content":"**frxUSD (formerly FRAX)** is a fully-collateralized [stablecoin](https://iq.wiki/wiki/stablecoin) issued by the [Frax Finance](https://iq.wiki/wiki/frax-finance) Protocol, designed to be redeemable for [fiat currency](https://iq.wiki/wiki/fiat-money). It operates under a hybrid framework that combines offchain custodians with onchain infrastructure developed by the protocol for minting and redemption. [\\[2\\]](#cite-id-odqfqhdIr3)\n\n## Overview\n\nfrxUSD is the [stablecoin](https://iq.wiki/wiki/stablecoin) of the [Frax Finance](https://iq.wiki/wiki/frax-finance) Protocol and is designed to be pegged to the US dollar. It is the first and only [stablecoin](https://iq.wiki/wiki/stablecoin) with parts of its supply backed by collateral and part of the supply fractionally stabilized. On February 23rd, 2023, the [Frax Finance](https://iq.wiki/wiki/frax-finance) community voted to fully collateralize it. [\\[3\\]](#cite-id-GXBCUEOzlOzbmqiM)\n\nThe price of frxUSD and collateral are all calculated with a time-weighted average of the [Uniswap](https://iq.wiki/wiki/uniswap) pair price and the [ETH](https://iq.wiki/wiki/ethereum):USD [Chainlink](https://iq.wiki/wiki/chainlink) oracle. The [Chainlink](https://iq.wiki/wiki/chainlink) [oracle](https://iq.wiki/wiki/oracle) allows the protocol to get the true price of USD instead of an average of stablecoin pools on Uniswap. Historically, at genesis, frxUSD (formerly [FRAX](https://iq.wiki/wiki/frax)) was 100% collateralized, meaning that [minting](https://iq.wiki/wiki/minting) frxUSD only requires placing collateral into the [minting](https://iq.wiki/wiki/minting) contract. During the fractional phase, [minting](https://iq.wiki/wiki/minting) frxUSD required the appropriate ratio of collateral and [burning](https://iq.wiki/wiki/token-burn) the ratio of [FRAX](https://iq.wiki/wiki/frax) (formerly FXS). This design was implemented so that as the velocity of the system increases, it becomes easier and safer to include volatile cryptocurrencies such as [ETH](https://iq.wiki/wiki/ethereum) and wrapped [BTC](https://iq.wiki/wiki/bitcoin) into future pools with governance.\n\n### Frax Staking\n\nFrax Finance protocol allows frxUSD holders to lock up frxUSD tokens to generate yield on various pools on different chains. [\\[1\\]](#cite-id-nw8VHnOKdi)\n\n## ATW Partners Investment in frxUSD\n\nOn January 14, 2026, Frax announced a joint initiative with investment firm ATW Partners and digital asset custodian [BitGo](https://iq.wiki/wiki/bitgo). The partnership centers on an institutional investment into frxUSD to bridge traditional and decentralized finance. Key details of the announcement include:\n\n* **Investment:** ATW Partners agreed to deploy up to $50 million into frxUSD.\n* **Custody:** [BitGo](https://iq.wiki/wiki/bitgo) Bank & Trust will provide qualified custody for the frxUSD held by ATW Partners.\n* **Reserve Backing:** The frxUSD reserves are backed by tokenized U.S. Treasury exposure via a WisdomTree government money market digital fund (WTGXX) on the [FraxNet](https://iq.wiki/wiki/fraxnet) platform.\n\nFrax founder [Sam Kazemian](https://iq.wiki/wiki/sam-kazemian) stated that the partnership demonstrates the utility of stablecoins for modern financial institutions. The firms also stated their intention to expand the partnership to develop further institutional and B2B applications for frxUSD. [\\[4\\]](#cite-id-A71D1v17GuyCdw5P)","summary":"frxUSD, the stablecoin of the Frax Finance Protocol, is fully collateralized and pegged to the US dollar. It transitioned from a fractional model to full collat...","images":[{"id":"QmYh4GTcsKzEnkVsmSDMQ2pyDSnaSjkphFbyobTG1hsQrr","type":"image/jpeg"}],"categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"tags":[{"id":"Stablecoins"}],"media":[],"metadata":[{"id":"fraxscan","value":"https://fraxscan.com/token/0xfc00000000000000000000000000000000000001"},{"id":"website","value":"https://frax.finance/"},{"id":"discord_profile","value":"https://discord.com/invite/fraxfinance"},{"id":"github_profile","value":"https://github.com/FraxFinance"},{"id":"twitter_profile","value":"https://x.com/fraxfinance"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/frax-usd"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/frax-usd/"},{"id":"etherscan","value":"https://etherscan.io/token/0xcacd6fd266af91b8aed52accc382b4e165586e29"},{"id":"medium_profile","value":"https://fraxfinancecommunity.medium.com/"},{"id":"references","value":"[{\"url\":\"https://app.frax.finance/staking/overview\",\"description\":\"Frax Staking\",\"id\":\"nw8VHnOKdi\",\"timestamp\":1734051183855},{\"id\":\"odqfqhdIr3\",\"description\":\"Frax Docs: Frax USD Stablecoin\",\"timestamp\":1748440766098,\"url\":\"https://docs.frax.com/protocol/assets/frxusd/frxusd\"},{\"id\":\"GXBCUEOzlOzbmqiM\",\"url\":\"https://x.com/samkazemian/status/1380022644280414212?ref\\\\_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1380022644280414212%7Ctwgr%5E7ec7f81260aee7294bc1f546c6f1499970c83a0f%7Ctwcon%5Es1\\\\_\\\\&ref\\\\_url=https%3A%2F%2Fcdn.iframe.ly%2FOSd3lfb%3Fapp%3D1\",\"description\":\"Sam Kazemian's tweet on algorithmic stablecoins\",\"timestamp\":1769458809111},{\"id\":\"A71D1v17GuyCdw5P\",\"url\":\"https://www.prnewswire.com/news-releases/atw-partners-agrees-to-invest-50-million-in-fraxs-frxusd-stablecoin-custodied-by-bitgo-302661520.html\",\"description\":\"PR Newswire: ATW Partners to Invest $50 Million in Frax's frxUSD\",\"timestamp\":1769458809111}]"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmbBKnMiA4LeqDpUmAEZnFucPDgsjyutaf9kqCprZLkVfh\""},{"id":"commit-message","value":"\"Removed outdated overview for frxUSD.\""},{"id":"previous_cid","value":"QmbBKnMiA4LeqDpUmAEZnFucPDgsjyutaf9kqCprZLkVfh"}],"events":[],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0xbc74F7Beea348c97350e4DBc49227A5Ee7d27D3e"},"operator":{"id":"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138"},"language":"en","version":1,"linkedWikis":{"blockchains":["frax-finance"],"founders":["sam-kazemian","travis-moore"],"speakers":[]},"recentActivity":"{\"items\":[{\"id\":\"5f8cdcd0-2afc-4b58-906b-39681a8f7a38\",\"title\":\"frxUSD\",\"description\":\"frxUSD, the stablecoin of the Frax Finance Protocol, is fully collateralized and pegged to the US dollar. It transitioned from a fractional model to full collat...\",\"timestamp\":\"2026-01-26T20:34:41.089Z\",\"category\":\"Cryptocurrencies\",\"status\":{\"icon\":\"RiGlobalLine\",\"label\":\"Wiki Updated\",\"iconClassName\":\"text-green-500\"},\"user\":{\"name\":\"0xbc74F7Beea348c97350e4DBc49227A5Ee7d27D3e\",\"address\":\"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138\"},\"button\":{\"label\":\"View Summary\",\"icon\":\"RiFileTextLine\"},\"summarySections\":[{\"title\":\"Overview\",\"subtitle\":\"Updated links in the 'Overview' section.\",\"variant\":\"modified\",\"changeCount\":1,\"changes\":[\"In the second paragraph, added a link to the FRAX wiki page where the stablecoin was formerly mentioned as just text.\"]},{\"title\":\"Full Collateralization\",\"subtitle\":\"The section detailing the move to full collateralization was removed.\",\"variant\":\"removed\",\"changeCount\":1,\"changes\":[\"Removed the 'Full Collateralization' section, which explained the community vote (FIP-188) to fully collateralize frxUSD.\"]},{\"title\":\"Motivation\",\"subtitle\":\"The 'Motivation' section for full collateralization was removed.\",\"variant\":\"removed\",\"changeCount\":1,\"changes\":[\"Removed the 'Motivation' section, which provided the rationale behind removing the algorithmic backing of Frax.\"]},{\"title\":\"ATW Partners Investment in frxUSD\",\"subtitle\":\"A new section was added about an institutional investment in frxUSD.\",\"variant\":\"added\",\"changeCount\":1,\"changes\":[\"Added a new section detailing a joint initiative with ATW Partners and BitGo, including a $50 million investment into frxUSD and custody details. [[\\\"4\\\"]](#cite-id-A71D1v17GuyCdw5P)\"]},{\"title\":\"References\",\"subtitle\":\"References were updated to reflect content changes.\",\"variant\":\"modified\",\"changeCount\":2,\"changes\":[\"Added reference: 'PR Newswire: ATW Partners to Invest $50 Million in Frax's frxUSD'.\",\"Removed reference: '[FIP - 188] Increase CR to 100%'.\"]},{\"title\":\"Speakers\",\"subtitle\":\"The 'speakers' field was removed.\",\"variant\":\"removed\",\"changeCount\":1,\"changes\":[\"Removed the 'speakers' field, which was previously empty.\"]}]}]}"}