Frax is testing a receivables financing product on its FraxNet platform, with founder and CEO Sam Kazemian positioning businesses as the primary drivers of stablecoin adoption in the coming phase.
Kazemian told Crypto Briefing that Frax has signed agreements with several large companies, with announcements expected soon. The company is targeting businesses that serve international clients, move large sums, and require customized compliance, stablecoin conversion, and payment infrastructure.
Stablecoin Benefits for Businesses
Businesses holding frxUSD can earn up to 5% annually through Frax's sfrxUSD savings product while retaining the ability to make payments or use their balances as collateral, according to Kazemian.
Kazemian highlighted the cost structure of traditional payment networks, noting that merchants typically pay 2% to 3% per transaction. He pointed to Brazil's Pix and India's UPI as examples of payment systems that enable low-cost transactions through QR codes, positioning stablecoins as a comparable solution for dollar transfers.
Receivables Financing Structure
FraxNet is currently testing receivables financing through individual lending vaults, allowing businesses to borrow against outstanding invoices. Under this model, lenders provide capital to a vault, which businesses access using receivables as collateral. Once customers settle invoices, funds return to the vault and are distributed to lenders with their returns.
Frax plans to introduce generalized vaults that can finance multiple receivables and allow outside liquidity providers to participate.
Current Operations and Timeline
Frax's existing business offering centers on FraxNet accounts, which allow businesses to mint and redeem frxUSD through banking infrastructure and maintain stablecoin treasury balances. FraxNet opened to the public in October 2025, while receivables financing and payment applications remain in development.
Kazemian described frxUSD as a stablecoin with approximately $100 million in circulation, processing more than $10 million in daily minting, redemptions, and transfers, primarily through decentralized finance. Data from DefiLlama shows frxUSD with slightly less than $100 million in circulation.
Competitive Landscape and Interoperability
Frax's expansion into business payments coincides with larger financial and technology companies developing their own stablecoin infrastructure. Open Standard, backed by founding partners including Coinbase, Mastercard, Shopify, Stripe, and Visa, launched Open USD on September 30, offering free minting and redemption for businesses alongside reserve revenue sharing arrangements.
Kazemian said the involvement of major payment companies signals growing recognition of stablecoins as alternative infrastructure for transferring dollars. He expects major stablecoins to become interchangeable through clearinghouses such as The Better Money Company, positioning frxUSD and Open USD as complementary rather than competitive.
Adoption Barriers and Future Outlook
Despite growing institutional interest, Kazemian identified user experience, education, trust, and switching costs as primary obstacles preventing businesses from adopting stablecoins directly.
Looking ahead to 2027, Kazemian said meaningful adoption would involve large companies settling payments through FraxPay, maintaining operating balances in frxUSD and sfrxUSD, and suppliers retaining stablecoins rather than immediately converting them into traditional currencies. He also highlighted the development of generalized receivables vaults funded by outside lenders as an indicator of growing business demand.
