Frax Secures Up to $50 Million frxUSD Commitment From ATW Partners With BitGo Custody

New updates have been reported about Frax.

Frax has entered into a strategic arrangement with New York-based investment firm ATW Partners that will see up to $50 million deployed into Frax’s frxUSD stablecoin, marking a notable institutional-scale commitment to its digital dollar ecosystem. Under the structure of the deal, ATW Partners and its affiliates will hold frxUSD with qualified custody provided by BitGo Bank & Trust, while Frax will manage the reserves, fully backed by tokenized U.S. Treasury exposure via WisdomTree’s WTGXX on the FraxNet platform. For Frax, this combines institutional capital, regulated custody, and transparent treasury-backed collateral, reinforcing frxUSD’s positioning as an institutional-grade stablecoin and adding momentum to FraxNet as a non-custodial infrastructure layer for financial institutions and high-net-worth users.

Frax founder Sam Kazemian framed the arrangement as a proof point for institutional adoption of stablecoins, highlighting that frxUSD and FraxNet enable minting, redemption, and reward-earning activity with greater speed and flexibility than traditional finance rails. BitGo’s involvement, including a controlled account framework for ATW, is intended to satisfy institutional requirements around transparency, safeguards, and operational controls while allowing ATW to benefit from on-chain workflows. ATW has signaled that this partnership is core to its strategy of working with digital asset foundations like Frax to bridge traditional finance with on-chain infrastructure, using frxUSD for both internal operations and portfolio company use cases. Frax and ATW expect to expand the collaboration in the coming months to drive additional institutional investment and B2B adoption of frxUSD, with an explicit focus on increasing total value locked (TVL) across the Frax ecosystem and broadening real-world usage of its treasury-backed digital dollar.