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 low cost transactions through QR codes.
“Stablecoins bring that to the dollar,” he said.
The comments expand on remarks Kazemian made on The Rollup podcast in Singapore earlier this month, where he argued that crypto cards offered by ether.fi, Ethena and Plasma primarily serve consumers rather than businesses adopting stablecoins directly.
Frax develops receivables financing through onchain vaults
Kazemian said FraxNet is currently testing receivables financing through individual lending vaults, allowing businesses to borrow against outstanding invoices.
Under the model, lenders provide capital to a vault, which businesses can access using receivables as collateral. Once customers settle their invoices, funds return to the vault and are distributed to lenders with their returns.
Frax plans to introduce generalized vaults that finance multiple receivables and allow outside liquidity providers to participate.
The company’s existing business offering centers on FraxNet accounts, which allow businesses to mint and redeem frxUSD through banking infrastructure and maintain stablecoin treasury balances.
FraxNet opened to the public in October 2025, while receivables financing and payment applications, including integrations with FraxPay, remain in development.
Kazemian described frxUSD as a stablecoin with approximately $100 million in circulation, processing more than $10 million in daily minting, redemptions and transfers, primarily through decentralized finance.
Crypto Briefing has not independently verified the transaction volume. Data from DefiLlama shows frxUSD with slightly less than $100 million in circulation.
Frax CEO sees Open USD as complementary to frxUSD
Frax’s expansion into business payments comes as larger financial and technology companies develop their own stablecoin infrastructure.
Open Standard, backed by founding partners including Coinbase, Mastercard, Shopify, Stripe and Visa, launched Open USD on September 30, offering free minting and redemption for businesses alongside reserve revenue sharing arrangements.
Kazemian said the involvement of major payment companies signals growing recognition of stablecoins as an alternative infrastructure for transferring dollars.
He expects major stablecoins to become interchangeable through clearinghouses such as Frax partner The Better Money Company.
“frxUSD and Open USD will be complements rather than competitors,” Kazemian said.
Despite growing institutional interest, he identified user experience, education, trust and switching costs as the primary obstacles preventing businesses from adopting stablecoins directly.
Looking ahead to 2027, Kazemian said meaningful adoption would involve large companies settling payments through FraxPay, maintaining operating balances in frxUSD and sfrxUSD, and suppliers retaining stablecoins rather than immediately converting them into traditional currencies.
He also pointed to the development of generalized receivables vaults funded by outside lenders as another indicator of growing business demand.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.