Frax Finance Joins Cosmos, Targets $100B in Assets by 2026

Frax Finance partners with Noble to bring FRAX stablecoin to Cosmos, aiming for $100 billion in assets by 2026.

By Max Weldon

4/4, 05:52 EDT
Bitcoin / U.S. dollar

Key Takeaway

  • Frax Finance partners with Noble to bring its stablecoin FRAX and sFRAX to the Cosmos ecosystem, expanding beyond Ethereum.
  • The move aims to boost FRAX adoption in trading, savings, payments, and as collateral within Cosmos' 80-blockchain network.
  • Noble's recent integration includes over $195 million USDC circulating supply; more than $2.5 billion crypto assets transferred across Cosmos chains in four weeks.

Frax Finance Expands to Cosmos

Frax Finance, the decentralized protocol behind the seventh-largest stablecoin FRAX, has announced a significant partnership with Noble, an asset issuance chain within the Cosmos ecosystem. This collaboration marks a strategic move to extend Frax Finance's reach beyond Ethereum, integrating its crypto-collateralized stablecoin FRAX and its staked version, sFRAX, into the Cosmos network. Cosmos, known for its interoperability among approximately 80 blockchains, will now host native FRAX issuance, providing a decentralized alternative to USDC, the world's second-largest dollar-pegged cryptocurrency. Sam Kazemian, founder of Frax Finance, expressed enthusiasm about the partnership, highlighting the potential for innovative use cases and incentives within the Cosmos ecosystem.

Noble's Role in the Expansion

Noble, a Cosmos application-specific blockchain, plays a crucial role in this expansion by facilitating the issuance of native digital assets, including FRAX and sFRAX, within the Cosmos ecosystem. This move follows Noble's successful integration of Circle’s USDC in September 2023, which accounted for 0.6% of the total USDC supply across all blockchains, with a circulating quantity of over $195 million. Noble's technology enables seamless asset integration with major Cosmos chains, such as Osmosis, dYdX, Celestia, Sei, and Injective, enhancing the liquidity and utility of FRAX and sFRAX across a wide range of applications.

Frax Finance's Ambitious Roadmap

In addition to the Cosmos expansion, Frax Finance unveiled a singularity roadmap aimed at increasing the total dollar value of crypto assets locked in its layer 2 blockchain, Fraxtal, to $100 billion by the end of 2026. With a current total value locked (TVL) of $13.2 million, the roadmap outlines the launch of 23 layer 3 protocols within a year and the introduction of new assets like frxNEAR, frxTIA, and frxMETIS. The roadmap also proposes revitalizing a mechanism to share protocol revenue with stakers of its native tokens, aiming to fully collateralize the FRAX stablecoin and enhance yields on sFRAX.

Management Quotes

  • Sam Kazemian, Founder of Frax Finance:

    "Bringing native FRAX issuance to Cosmos has been a priority for some time, and we are thrilled to announce Noble as our issuance partner. We look forward to FRAX and sFRAX being available and are excited by the potential innovative use cases and incentives developed by us and our partners as well as by the broader community of Cosmos appchains and users."