Digital asset firm New Frontier Labs has partnered with BitGo Bank & Trust National Association, which will issue and custody the FYUSD stablecoin for institutional investors in Asia. The dollar-pegged token complies with the GENIUS Act regulatory framework and features a “programmable settlement” layer for AI agents. Meanwhile, the broader stablecoin market cap has fallen from its December peak of over $300 billion, with Tether’s USDT experiencing significant supply reductions.
New Frontier Labs has partnered with BitGo Bank & Trust National Association for the issuance and custodial services of the FYUSD stablecoin. The dollar-pegged token is designed for institutional investors in the Asia region.
BitGo’s announcement stated FYUSD is compliant with the GENIUS Act stablecoin regulatory framework. The regulations require 1:1 backing with cash or short-term U.S. government debt, alongside AML and KYC checks.
The company also developed “Fypher,” a suite of stablecoin infrastructure tools. It provides a programmable settlement layer allowing the FYUSD token to be used by autonomous AI agents for commercial transactions.
U.S. Treasury Secretary Scott Bessent has touted stablecoins as a way to preserve U.S. dollar dominance. He cited benefits like reduced settlement times, lower transaction costs, and democratized access to dollars.
The total market capitalization of stablecoins is over $295 billion, according to RWA.XYZ. This is down from the peak of over $300 billion recorded in December.
Stablecoin issuer Tether is on-track for the steepest monthly drop in USDT circulating supply since the 2022 collapse of FTX. The circulating supply was 183.64 billion USDT at the time of writing, CoinMarketCap data showed.
While USDT remains the world’s largest stablecoin, its circulating supply is down $1.5 billion so far in February, Artemis data shows. This follows a $1.2 billion drop in January.
Stablecoin redemptions could signal a broader contraction in the crypto market. Investors may be liquidating positions and moving holdings off-chain into other investments.
However, spokespeople for Tether said the data represent short-term positioning. They indicated it is not a long-term trend of sustained outflows and market contraction.
