In a recent clip from The Rollup's "Stabled Up" podcast episode, Sam Kazemian, the founder and CEO of Frax Finance, opened up about the evolving world of stablecoins. He touched on Tether's newly launched USAT, the heated competition around USDH, and Frax's own FraxNet. If you're into blockchain and meme tokens, understanding these developments is key because stablecoins provide the stable foundation for trading volatile assets like memes without constant price swings.

Unpacking the Clip: Sam's Take on USAT and the GENIUS Act

The clip starts with Sam recounting a meeting with key players in the stablecoin space: Paolo Ardoino (CEO of Tether), Bo Hines (now heading Tether's USAT), and representatives from Cantor Fitzgerald. He emphasizes the importance of issuing "GENIUS compatible" stablecoins. But what's that all about?

The GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins Act, is a landmark U.S. law passed in 2025 that regulates stablecoins. It ensures they're backed 1:1 by U.S. dollars or low-risk assets, complies with anti-money laundering rules, and sets standards for issuers. Sam points out that major players can't ignore this because the stablecoin market taps into a massive $20 trillion opportunity in traditional finance. "To just be entirely absent from it is not an option," he says.

USAT, or USA₮, is Tether's response to this. Launched in September 2025, it's a U.S.-regulated stablecoin designed specifically for American users, partnered with Cantor Fitzgerald and Anchorage Digital. Unlike Tether's global USDT, USAT focuses on compliance with U.S. laws like the GENIUS Act, making it easier for institutions and businesses to use digital dollars without regulatory headaches. For meme token enthusiasts, this means more stable on-ramps for trading, potentially boosting liquidity in DeFi platforms where memes thrive.

The USDH Competition: Beyond Profits to Distribution

Sam also dives into USDH, which is Hyperliquid's native stablecoin ticker. Hyperliquid, a decentralized perpetuals exchange, opened bids for who gets to issue USDH, drawing interest from heavyweights like Frax and Paxos.

According to Sam, the real prize isn't the yield or profits from issuing the stablecoin—many bidders, including Frax, are offering to return 100% of the yield to Hyperliquid. Instead, it's about "seizing a massive distribution scenario." Being the issuer means integrating deeply with Hyperliquid's ecosystem, which could handle billions in trading volume. For Frax, this aligns with their push for interoperability.

In the meme token world, platforms like Hyperliquid often see wild volatility from meme trades. A reliable stablecoin like USDH could stabilize perp trading, allowing meme holders to hedge positions without exiting to fiat.

FraxNet: Frax's Game-Changer for Cross-Chain Stablecoins

Then there's FraxNet, Frax Finance's latest innovation. It's a cross-chain interoperability layer that lets users mint, redeem, and earn yield on frxUSD (Frax's stablecoin) across multiple blockchains without custodians. Think of it as a seamless bridge for stablecoins, earning around 4.1% APY while supporting multi-asset collateral.

Launched in private testing earlier in 2025, FraxNet aims to make stablecoins more accessible through a simple account-based system. Sam has highlighted it as the "TCP/IP of economic value," meaning it's foundational infrastructure for moving value like the internet moves data.

For blockchain practitioners and meme token fans, FraxNet could mean easier cross-chain swaps. Imagine moving your meme gains from Solana to Ethereum without high fees or risks—stablecoins like frxUSD make that possible, enhancing the overall ecosystem.

Why This Matters for Meme Tokens and Blockchain

Stablecoins aren't just boring digital dollars; they're the backbone of DeFi and meme trading. With regulations like the GENIUS Act bringing legitimacy, projects like USAT and USDH open doors to institutional money, which could pour into meme ecosystems. FraxNet takes it further by making everything more connected and efficient.

As Sam puts it, the stablecoin space is heating up, and ignoring it isn't an option. If you're building or trading in blockchain, keeping an eye on these developments will help you stay ahead. Check out the full "Stabled Up" episode on The Rollup's YouTube channel or Spotify for more deep dives.

Stay tuned to Meme Insider for more updates on how these tech advancements impact your favorite meme tokens!