TechFlow news, the founder of Frax Finance has released a new proposal suggesting FinresPBC as the off-chain RWA partner for FRAX v3.
The Frax Protocol will launch a new asset strategy, FRAX v3 RWA, which requires a method to hold cash deposits and other low-risk cash equivalent assets (such as reverse repurchase agreements and U.S. Treasuries). To meet this need, core developers of Frax are building traditional financial infrastructure.
Earlier this year, Financial Reserves and Asset Exploration Inc (shortened to FinresPBC 24) was established in Delaware, USA, as a public benefit C corporation with the mission of achieving this goal for the Frax Protocol.
FinresPBC aims to provide necessary support to the Frax Protocol. It does not pursue profit; its public benefit mission is to bring traditional financial assets (commonly known as "RWAs") on-chain. As such, any returns generated from the assets it holds will be returned to the protocol (after deducting operational costs associated with running its public benefit operations). The public benefit mission of FinresPBC is designed to allow the Frax Protocol access to secure cash equivalent assets and yields close to the Federal Reserve rate, rather than generating profit or charging fees (except for covering the minimal costs related to fulfilling its mission).
In addition, FinresPBC’s mission includes eventually meeting the requirements to obtain a Federal Reserve Master Account (FMA).
Currently, FinresPBC provides the following services to the Frax Protocol:
- Holding dollar deposits in FDIC-insured IntraFi savings accounts and earning yield.
- Minting/redeeming Paxos USDP stablecoins and earning yield.
- Minting/redeeming Circle USDC stablecoins and earning yield.
- Holding/purchasing/selling U.S. Treasuries in segregated brokerage accounts and earning yield.
