The Rollup The Two Stablecoin Models That Will Dominate with Sam Kazemian
Nov 13, 2025
In this engaging discussion, Sam Kazemian, founder of Frax Finance and innovator behind FraxUSD and FraxNet, explores the evolving stablecoin landscape. He explains the differences between payment and yield-bearing stablecoins and how emerging regulations could revolutionize compliance in this sector. Sam shares insights on the role of tokenized real-world assets as collateral and the importance of a decentralized clearinghouse. He also touches on how institutional interest might reshape the market and highlights the path for future branded stablecoin initiatives.
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Separate Risk Analysis From Allocation
- Separate risk evaluation from risk allocation when designing vaults and ratings.
- Create arm's-length risk reviewers distinct from the teams that deploy or allocate funds.
Stablecoin Spectrum And Clearinghouse
- Stablecoins fall on a spectrum from universally-accepted "money" to narrow, branded digital dollars for merchants.
- FraxNet aims to act as a non-custodial clearinghouse enabling swaps and redemptions across these stablecoins.
Payments Versus Savings Stablecoins
- There are two fundamental stablecoin economic forms: payment coins and savings (yield-bearing) coins.
- Payment coins must be simple and widely accepted while savings coins live in yield-bearing vaults with explicit risk.