Tokenized assets need more than an onchain wrapper. They need access to liquidity.
@fraxfinance and
@GearboxProtocol are building that connection through automated RWA leverage using $frxUSD, starting with Midas mF-ONE, managed by Fasanara Capital and curated by kpk.
KYC-verified borrowers can access frxUSD liquidity against tokenized real-world asset collateral, while borrowed funds remain restricted to approved strategies.
For Frax, this creates a concrete use case for frxUSD in institutional RWA lending. The market has also been added to the $sfrxUSD strategy framework, with an initial allocation cap of $5 million.
As tokenized funds move further onchain, borrowing against these assets could become an important part of the infrastructure. Frax is positioning $frxUSD to play a role in that market.