BitGo to Issue FYUSD Dollar-Pegged Stablecoin

New Frontier Labs has partnered with BitGo Bank & Trust National Association, the entity BitGo will use to issue and provide custodial services for FYUSD, a dollar‑pegged token aimed at institutional investors in Asia. FYUSD is designed to comply with the GENIUS Act stablecoin framework, which calls for 1:1 backing via cash deposits held by a custodian or short‑term U.S.

government debt, along with anti‑money‑laundering and know‑your‑customer checks. The company also developed "Fypher," a suite of stablecoin infrastructure tools that adds a programmable settlement layer, enabling autonomous AI agents to execute commercial transactions using FYUSD.

Stablecoins have pulled back from a peak of more than $300 billion in December, with the market capitalization just over $295 billion. Tether's USDt circulating supply was 183.64 billion and has fallen roughly $1.5 billion so far in February after a $1.2 billion drop in January; spokespeople for Tether described the shifts as short‑term positioning rather than a long‑term trend.

United States, Asia

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