The Rollup Banks Are Fighting To Block Stablecoin Yield and Why That's Bullish with Sean Kelley
Feb 17, 2026
Sean Kelley, VP at Frax who builds institutional bridges for frxUSD. He discusses yield-bearing stablecoins drawing bank pushback. Talks RWA looping and how multiple tokenized treasuries back frxUSD. Covers strategies to cross into TradFi payments, institutional vault demand, and Frax’s integration roadmap.
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Frax's Build-Then-Scale Playbook
- Frax focused 2025 on infra and 2026 on growth bridging DeFi and TradFi.
- FraxUSD pairs with many DeFi stablecoins and uses yield to incentivize liquidity.
Multi-Issuer RWA Backing
- FraxUSD reserves include multiple RWA issuers like Biddle and WisdomTree.
- Holding on-chain RWAs gives Frax flexibility to source and move liquidity across issuers.
Risk-Free Yield For Core FRAXUSD
- FraxUSD's passthrough yield is pegged to the risk-free rate because it's backed by tokenized treasuries.
- Enhanced yields are targeted to S-FRAXUSD (the stake vault) rather than core FRAXUSD.