ATW Partners, Frax, and BitGo Bank & Trust said they have launched a joint initiative in which ATW, through affiliates and portfolio companies, expects to deploy up to $50 million into Frax’s frxUSD stablecoin, with BitGo providing qualified custody for the position.
Under the arrangement, Frax will maintain frxUSD reserves described as fully backed by tokenized U.S. Treasury exposure through WisdomTree’s WTGXX on the FraxNet platform, positioning the effort as a bridge between traditional finance and decentralized finance and aimed at expanding institutional usage of on-chain dollars.
The companies said the structure is intended to pair stablecoin speed and programmability with institutional controls, highlighting BitGo’s “controlled account” custody framework as a way for ATW to use on-chain workflows while maintaining transparency and safeguards aligned with institutional investment processes.
ATW Partners and Frax said they expect to broaden the partnership in coming months to support additional institutional investment and B2B use cases for frxUSD while growing total value locked.
KEY QUOTE:
“ATW and BitGo are showing how modern financial institutions use stablecoins. With frxUSD and FraxNet, institutions can mint, redeem, and earn platform rewards for eligible activity, unlocking the superior speed and flexibility of stablecoins over traditional finance.”
Sam Kazemian, Founder, Frax
“BitGo’s custody support for frxUSD underscores how qualified custodians can provide the controls institutions need as they adopt tokenized financial assets. Through our controlled account framework, ATW can access the operational benefits of onchain workflows while maintaining the transparency and safeguards that institutional investment workflows require.”
Nathan Stump, Director of FinTech, BitGo
“This partnership aligns with our strategy of working closely with leading digital asset foundations like Frax to support institutional adoption. By collaborating with Frax, we aim to help bridge traditional finance with on-chain infrastructure—bringing institutional participation and new real-world use cases for frxUSD. The stablecoin enables us and our portfolio companies to move dollars at the speed of modern markets while maintaining clear reserve alignment and institutional-grade custody.”
ATW Partners representative
