Frax founder Sam Kazemian is talking about the security of his own stablecoin FRAX again:
U.S. Treasury bond support is not the safest stablecoin design. After all, it may be on the verge of debt default risk like Silicon Valley Bank in 2023, leading to decoupling. Technically, only issuers with Federal Reserve Master Accounts (FMA) can mint truly risk-free stablecoins.
For your information, this FMA allows holding US dollars and trading directly with the Federal Reserve, thereby avoiding the risk of default and bankruptcy of commercial banks. Frax is indeed the most active DeFi project party in applying for FMA among the current stablecoin issuers, but it is still waiting for final approval~
