Frax Finance founder Sam Kazemian assessed the future of the FRAXUSD stablecoin.
Referring to stablecoin regulations in the United States, Kazemian said the Genius Act is technically in effect, but they anticipate the authorization process will be fully operational in the first quarter of 2027 (Q1 2027) as regulators (OCC and federal agencies) clarify procedures. The famous founder said he aims for FRAXUSD to be one of the first compliant “Genius Stablecoins” to receive this license, adding that the “approved by default unless otherwise proven” clause of the law will pave the way for innovation.
Kazemian argued that we are entering a period where cryptocurrencies should be valued based on fundamental financial data, like traditional stocks. With this in mind, Frax Finance will organize an “Investor Week” in the third quarter (Q3) 2026.
Sam Kazemian claims to have signed agreements with large, anonymous but globally recognized Web2 companies and publicly traded companies for payment processing.
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Kazemian argued that traditional companies are only looking for “economically risk-free, Genius-compatible digital dollars” to hold in their treasuries and make payments on behalf of their customers, and that Frax wins huge tenders because of the brand’s perception of its ownership claims.
According to the founder, part of the revenue from these collaborations, details of which will be announced in the third quarter, will be used to $FRAX token burning, while another part will be invested in R&D to grow the business.
Making an unusual prediction about the future of the market, Kazemian claimed that the stablecoin market has long been stagnant in the $100-200 billion range, but that a “jumped” wave of growth will come in the next 6-8 months. According to Kazemian, growth will not be linear; A big bank moving 10% of its deposits to the chain or a giant company issuing stablecoins worth $5 billion could instantly boost the market to $600-700 billion.
*This does not constitute investment advice.
