Frax Finance has deployed its Frax USD ($FRXUSD) stablecoin on the Scroll Network, a zk-Rollup layer-2 solution.

This integration allows users to mint $FRXUSD directly on Scroll and utilize it for daily transactions through a partnership with Etherfi. $FRXUSD is a USD-pegged stablecoin issued by the Frax Finance protocol, designed to maintain a 1:1 peg to the U.S. dollar through protocol-defined overcollateralization mechanisms.

This expansion to a new blockchain is a key part of a broader strategy for stablecoin issuers. By moving onto Layer 2 networks, they aim to increase the accessibility and utility of their assets, offering users lower transaction fees and faster settlement times.

What this signals for the industry: The move highlights the growing importance of Layer 2 ecosystems for stablecoin adoption. As DeFi activity migrates to these networks, stablecoin presence becomes crucial for providing liquidity and enabling a seamless user experience for payments, trading, and lending.