Frax USD is a fully-collateralized stablecoin designed for seamless integration into both decentralized finance (DeFi) and traditional financial systems. Issued by the Frax Finance Protocol, this stablecoin offers a fiat-redeemable option, ensuring that it maintains its value in a reliable manner. The unique hybrid model of Frax USD involves governance-approved custodians who are responsible for minting and redeeming frxUSD. This process is backed by cash-equivalent reserves, providing a strong foundation for stability and trust. Advanced on-chain mechanisms developed by the Frax Finance Protocol enhance the security and usability of frxUSD, making it an attractive option for users seeking stability in their digital transactions. This combination of innovative technology and robust backing positions Frax USD as a valuable asset in the evolving landscape of cryptocurrency.