New Frontier Labs LLC, a digital asset firm developing the Fypher stablecoin infrastructure project, has partnered with BitGo Bank & Trust, the federally regulated banking arm of digital asset infrastructure provider BitGo, appointing it as issuer and primary custodian for FYUSD, a U.S. dollar-backed stablecoin aimed at institutional users in Asian markets.
The companies said the partnership is intended to pair U.S.-style regulatory and custody practices with Asia’s growing demand for regulated digital assets, positioning FYUSD as a dollar token built for banks and fintech firms rather than general retail use.
FYUSD built around U.S. standards for Asian market
FYUSD is described as a stablecoin structured in line with the GENIUS Act framework, with an emphasis on transparency, reserve protection, and compliance obligations.
New Frontier Labs said the token is being developed for use in jurisdictions such as Hong Kong, Singapore, and Japan, where authorities are advancing specific rules for fiat-backed stablecoins, and is designed to integrate with local financial infrastructure, including banking systems and enterprise platforms, rather than serve purely as a trading instrument on crypto exchanges.
Fypher Platform and ‘Stablecoin 2.0’ Vision
As part of the rollout, New Frontier Labs has built Fypher, a modular stablecoin infrastructure suite with FYUSD at its center, aimed at delivering a regulation-aligned, dollar-backed stablecoin tailored to Asia and channeling part of the ecosystem’s economic value back into the region’s financial system.
Lucas Yi, head of business at New Frontier Labs, said FYUSD is designed to function on a programmable settlement layer for future financial services rather than operate solely as a static payment token. He described the initiative as a step toward “Stablecoin 2.0” and a foundation for “Agentic Commerce,” where AI-driven systems could carry out transactions autonomously using a compliant digital dollar.
Custody Structure and Institutional Integration
Under the arrangement, BitGo will provide issuance infrastructure aligned with U.S. regulatory expectations set out in the GENIUS Act framework, while reserves backing FYUSD will be held in segregated, bankruptcy-remote custody structures aimed at institutions seeking clear separation between client assets and the operating accounts of service providers.
According to the company, the token and the Fypher stack are being built to connect with enterprise APIs, banking systems, and regulated financial workflows so that FYUSD can be used within institutional processes such as payments, treasury management, and settlement, rather than being limited to use in purely crypto-native environments.
