What is Frax and why does it matter?
Frax is a decentralized finance (DeFi) project that has sought to combine stability and decentralization since its inception. Today, its main focus is its fully backed stablecoin frxUSD, backed by real assets, and an ecosystem with products such as loans, liquid staking, and its own layer 2 blockchain (Fraxtal).
1. Growing investment in marketing
In May 2025, Frax was the main sponsor at the Bitcoin2025 conference in Las Vegas. They set up a large booth and a VIP entrance, the “Frax Bitcoin Lobby Lounge.” The founder, Sam Kazemian, was present on the main stage and met with political and business leaders.
They also organized private events, such as a “Frax Cigar Night,” to network with investors and executives from the crypto world.
They also sponsored and participated in community meetups in cities like Paris, New York, and Amsterdam to strengthen community support.
Outcome: more visibility, new key contacts, brand reinforcement. All of this drives more users and investors toward the Frax ecosystem.
2. Benefits of the GENIUS Act in the U.S.
On May 20, 2025, the regulatory framework for stablecoins known as the “GENIUS Act” was approved in the Senate.
Frax has been very involved: its founder helped design the law and met with senators like Lummis and Hagerty.
frxUSD, as a fully backed stablecoin with structures adapted to legal requirements, is well positioned to obtain official licenses with this law.
Advantage: being close to legal design allows Frax to comply before other brands like USDC or USDT.
3. Strong ecosystem that builds trust
frxUSD: fiat-backed stablecoin at a 1:1 ratio.
sfrxUSD and sfrxETH: allow staking and generate yields directly.
Fraxlend, lending protocol, and Fraxtal, its layer 2 blockchain.
Partnerships with BlackRock (through the tokenized BUIDL fund with Securitize) and Securitize to strengthen transparent custody.
Integrations with DeFi platforms like Beets, dTRINITY, and Equalizer, enhancing liquidity and usage.
Why could the price go up?
More marketing and presence: sponsorship of conferences, community meetups, and private events generate greater interest and usage.
Legal advantage with the GENIUS Act: real possibility of being one of the first officially regulated stablecoins in the U.S.
Culture of strong partnerships: with BlackRock, Securitize, and DeFi platforms, increasing institutional and user trust.
Continuous innovation: with new products like Fraxtal and frxUSD, they offer real advancements, not just promises.
This is just a project I'm watching and in which I have a small position. It is by no means a financial recommendation. DYOR.