Financial Reserves and Asset Exploration Inc., or FinResPBC, is a public benefit corporation that supplies financial infrastructure to stablecoin issuers, traditional banks, and Web3 banks. It offers swap services and reserve custody strategies for stablecoin issuers while providing software to traditional banks for integrating stablecoin transactions for settlement and custody. ^[1]

Overview

Established in August 2023, FinResPBC is a conduit for the Frax Protocol, holding cash deposits and other low-risk cash-equivalent assets, such as reverse repo contracts and treasury bills, crucial for executing the FRAX v3 RWA (Real World Asset) strategy. Unlike profit-driven entities, FinresPBC's mission is to provide access to safe cash-equivalent assets and yields close to Federal Reserve rates without seeking financial gain. Any yields generated from these assets, after covering operational costs and fees, are returned to the Frax Protocol. This approach focuses on supporting the DeFi ecosystem and expanding traditional financial infrastructure, aiming to meet the requirements for a Federal Reserve Master Account (FMA) in the future. ^[2][4]

FinresPBC’s role is strictly limited to holding cash-equivalent reserves and issuing token representations of these reserves. It does not engage in Frax Protocol development or smart contract engineering or participate in Frax Finance operations. The corporation’s mission is to provide on-chain users access to off-chain cash-equivalent RWAs without engaging in additional for-profit activities or hypothecating reserves held for the Frax Protocol. FinresPBC emphasizes transparency and accountability by committing to regular asset breakdown reports. These reports will detail all reserves held for the Frax Protocol, including yields earned and the costs associated with managing these reserves and transactions. ^[2][5]

FinresPBC can currently perform the following functions for the Frax Protocol: ^[2]

• Hold US Dollar deposits in FDIC-insured IntraFi savings accounts and earn yield.
• Mint and redeem Paxos USDP stablecoins and earn yield.
• Mint and redeem Circle USDC stablecoins and earn yield.
• Hold, purchase, and sell United States Treasury Bills in segregated brokerage accounts to earn yield.

Partnerships

Lead Bank

FinResPBC’s current banking partner is Lead Bank, a regional bank that accommodates crypto businesses for safe, compliant traditional financial activities. FinResPBC is expanding its relationships with compliant and crypto-friendly financial partners, including full-service banks. ^[2][3]

Supported Stablecoins

• Frax
• USDCoin
• Tether
• USDP
• DAI