Frax CEO says businesses will drive next wave of stablecoin adoption as firm tests lending product

Frax is testing a receivables financing product on its FraxNet platform as founder and CEO Sam Kazemian bets that businesses, rather than consumer card users, will drive the next phase of stablecoin adoption. Kazemian told Crypto Briefing that Frax has signed agreements with several large companies, with announcements expected soon. He said the company is targeting businesses that serve international clients, move large sums and require customized compliance, stablecoin conversion and payment infrastructure. “They want their money to keep working as soon as payment lands,” Kazemian said, explaining that 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. Kazemian also questioned the fees charged by traditional payment networks, despite acknowledging the role companies such as Visa have played in establishing trust and fraud protections. “Merchants still pay 2% to 3% per transaction, a rate set when moving money required a card network in the middle,” he said. He pointed to Brazil’s Pix and India’s UPI as examples of payment systems that allow merchants to accept...