Digital asset company New Frontier Labs has partnered with BitGo Bank & Trust National Association to issue and provide custodial services for the dollar-pegged FYUSD stablecoin aimed at institutional investors in Asia.
BitGo said FYUSD complies with the GENIUS Act stablecoin framework, requiring 1:1 backing with cash deposits or short-term US government debt, alongside anti-money laundering and know-your-customer controls.
The company has also developed “Fypher,” a programmable settlement layer designed to enable the stablecoin’s use by autonomous AI agents for commercial transactions.
The launch comes as the total stablecoin market capitalisation stands near $295 billion, down from a peak above $300 billion in December, according to RWA.XYZ data.
Tether’s USDt, the largest stablecoin by market value, is on track for its steepest monthly supply decline since the 2022 FTX collapse, with circulating supply falling by about $1.5 billion in February after a $1.2 billion drop in January.
Some analysts interpret the redemptions as a sign of broader crypto market contraction as investors move assets off-chain, though Tether spokespersons have described the shifts as short-term positioning rather than evidence of sustained outflows.
US Treasury Secretary Scott Bessent has previously argued that stablecoins can reinforce dollar dominance by reducing settlement times and costs, underscoring the regulatory and geopolitical backdrop to new institutional-focused launches such as FYUSD.