Crypto infrastructure provider BitGo has been selected as the issuing and custodial partner for the new FYUSD stablecoin, a dollar pegged digital asset designed primarily for institutional investors across Asia. The token is being launched in collaboration with New Frontier Labs and will be issued through BitGo Bank & Trust National Association.
FYUSD Stablecoin Structured Under GENIUS Act Framework
According to the announcement, FYUSD is structured to comply with the requirements of the GENIUS Act, which mandates full 1:1 backing with cash reserves or short-term US government debt instruments. The framework also requires anti-money laundering controls and know-your-customer verification standards.
By aligning with federal regulatory guidelines, the project aims to position FYUSD as a compliant settlement asset for institutions seeking exposure to blockchain-based financial infrastructure while maintaining regulatory clarity.
Programmable Settlement Layer for AI-Driven Commerce
Alongside the token launch, BitGo introduced “Fypher,” an infrastructure suite designed to enable programmable settlement features. The system allows FYUSD to integrate with autonomous software agents, supporting machine-to-machine transactions and automated commercial workflows.
The broader stablecoin market currently stands near $295 billion in capitalization, down from its December peak above $300 billion. Circulating supply of Tether has declined in recent weeks, reflecting increased redemptions. While some analysts interpret the pullback as a sign of cooling market activity, issuers maintain that flows remain within typical short-term positioning patterns.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.