The proposal to incorporate $USTB, a tokenized fund of U.S. Treasury Bills, as reserves for frxUSD is live.

Frax has put forward a governance proposal to add Superstate’s USTB as a reserve asset for frxUSD, with an initial allocation cap of $100 million. USTB is a tokenized U.S. Treasury bill fund issued as an ERC-20 token, and the proposal says it would sit alongside frxUSD’s existing reserve mix of tokenized Treasury products and cash-like assets. The rationale is that USTB offers short-duration Treasury exposure with daily liquidity, institutional custody, and on-chain transferability, while targeting income aligned with the federal funds rate. For frxUSD, which is designed as a fully collateralized, fiat-redeemable stablecoin, adding another regulated reserve instrument is meant to expand backing options and diversify custody relationships; that matters because frxUSD’s solvency and redemption model depend on the quality and liquidity of its underlying reserves. The proposal also fits a broader pattern in which Frax has been widening frxUSD’s reserve framework across multiple enshrined custodians and tokenized government-bond funds, including USTB, BUIDL, WTGXX, and other approved reserve assets. In practice, the change would deepen frxUSD’s exposure to tokenized Treasury markets and reinforce its positioning as a reserve-backed stablecoin integrated with DeFi lending and liquidity venues.

✨ AI-generated background, compiled from web sources — not editorial content.

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• T-Bills
• Proposal
• US Treasury
• frxUSD