The official governance page shows that the Frax Finance community has initiated a proposal to "Introduce USTB as collateral and custodial assets for frxUSD." The proposal suggests introducing USTB, which is a short-term U.S. government securities fund from Superstate, as the reserve backing this stablecoin, providing stability, liquidity, and treasury yield.

USTB is a tokenized (ERC-20) fund that offers investors exposure to short-term U.S. Treasury bills. The investment objective of USTB is to seek current income consistent with liquidity and principal stability, aiming for returns in line with the federal funds rate. This proposal aims to introduce USTB as collateral, with an initial cap of $100 million. Voting is currently open and will close on January 1 of next year.