Frax USDFRXUSD#251

Frax USD is a fully-collateralized stablecoin issued by Frax Finance Protocol. The asset maintains its peg through fiat redemption — you can exchange frxUSD for actual cash reserves at any time. This backing structure removes guesswork from stability and gives you direct recourse to underlying value. The protocol uses a hybrid model where governance-approved custodians handle minting and redemption against cash-equivalent reserves. That means real collateral sits behind every token in circulation. Frax's onchain mechanisms then manage stability and security across DeFi markets and traditional finance integrations, letting you move frxUSD where you need it without intermediaries. You get a stablecoin built for actual utility — not a promise, but verifiable backing. Use it to settle trades, hold value in volatile markets, or bridge between crypto and traditional finance infrastructure.