BitGo will serve as the issuer and primary custodian of the dollar-pegged stablecoin FYUSD from New Frontier Labs, aimed at institutional clients in Asia.
New Frontier Labs announced a strategic partnership with BitGo Bank & Trust, one of the biggest providers of regulated digital asset infrastructure. Under the agreement, BitGo will issue the FYUSD stablecoin and hold its reserves. The stablecoin is backed by the U.S. dollar and is being developed with the requirements of institutional investors operating in Asian markets in mind.
The partnership is intended to introduce regulatory and custody standards in Asia comparable to those in the United States. FYUSD is structured in accordance with the GENIUS Act framework, a legislative initiative that defines transparency, reserve protection, and operational control requirements for issuing digital dollar instruments in the U.S.
Amid the ongoing development of stablecoin regulation in Hong Kong, Singapore, and Japan, the new instrument is positioned as a solution tailored to local financial systems. Unlike universal retail stablecoins, FYUSD is designed for integration with the region’s banking infrastructure and FinTech platforms. Support for corporate APIs, banking systems, and regulated financial processes is built into the project’s architecture.
According to Chris Park, Head of Commercial Strategy at BitGo Korea, the company will provide a regulated issuance infrastructure and an operational model compliant with multiple jurisdictions simultaneously.
FYUSD reserves will be held in segregated, bankruptcy-remote accounts, providing additional security for institutional users.
As part of the launch, New Frontier Labs also introduced the infrastructure platform Fypher, a modular suite of solutions for stablecoin issuance and circulation, with FYUSD as one of its key components. The project includes allocating part of the revenue and economic value generated within the ecosystem toward the development of financial infrastructure in the Asian region.
Lucas Yi, Head of Business at New Frontier Labs, stated that FYUSD is being built as a programmable settlement layer for the next generation of financial services. The company describes the initiative as a “Stablecoin 2.0” concept, envisioning the use of a digital dollar in automated settlements, including transactions executed by AI-based systems without human involvement.
In late 2025, BitGo received preliminary approval from a U.S. federal regulator to establish a national trust bank in the United States. Earlier that same year, the company launched a global over-the-counter (OTC) trading platform with access to more than 250 digital assets.
