BitGo Appointed as Official Issuer of FYUSD Stablecoin
Designed for Asian institutional market participants, this GENIUS Act-compliant digital dollar incorporates programmable functionality to enable autonomous AI agent transactions.
New Frontier Labs, a digital asset firm, has forged a partnership with BitGo Bank & Trust National Association, the designated entity through which crypto infrastructure provider BitGo will manage issuance and custody operations for FYUSD, a stablecoin pegged to the US dollar and targeted at institutional market participants across Asia.
According to BitGo's official statement, FYUSD adheres to the GENIUS Act regulatory framework governing stablecoins. These regulatory standards mandate full 1:1 reserve backing through either cash deposits maintained by a custodian or short-duration US government debt securities, alongside anti-money laundering (AML) protocols and know-your-customer (KYC) verification procedures.
Additionally, the firm has created "Fypher," a comprehensive suite of infrastructure solutions for stablecoins that delivers a "programmable settlement" framework for the FYUSD token, enabling its utilization by autonomous artificial intelligence agents conducting commercial transactions.
Scott Bessent, the US Treasury Secretary, has promoted stablecoins as a mechanism to maintain the supremacy of the US dollar by minimizing settlement durations, lowering transaction expenses and expanding access to US dollars for people lacking traditional banking services.
Stablecoins are down from the market cap peak of over $300 billion
At the time of publication, the aggregate market capitalization of stablecoins stands at more than $295 billion, based on data from RWA.XYZ, representing a decline from the all-time high exceeding $300 billion that was reached in December.
Tether, the company behind the USDt (USDT) dollar-backed token, is experiencing what could become the sharpest monthly decline in USDt tokens in circulation since the 2022 collapse of cryptocurrency exchange FTX. Current data from CoinMarketCap indicates that at the time of writing, the circulating supply stood at 183.64 billion USDT.
Despite USDt maintaining its position as the largest stablecoin globally by market capitalization, its supply in circulation has decreased by $1.5 billion throughout February to date, according to information from Artemis. This marks the second consecutive month of accelerated user redemptions, coming after a $1.2 billion decline recorded in January.
Redemptions of stablecoins may indicate a wider contraction occurring across the cryptocurrency market, suggesting that investors are liquidating their holdings and transferring their assets off-chain, possibly redirecting them into alternative investment vehicles.
Nevertheless, representatives from Tether informed Cointelegraph that these figures reflect short-term market positioning, as opposed to indicating a long-term pattern of continuous outflows and marketplace contraction.