Securitize's proposal to use the BUIDL token as support for frxUSD approved

According to Odaily Planet Daily, Securitize proposed to use BlackRock's BUIDL token as collateral for the Frax Finance USD stablecoin. This proposal has been approved by the governance department, paving the way for the launch of the frxUSD stablecoin.

BUIDL will serve as the collateral for minting and redeeming frxUSD. This stablecoin will be exclusively backed by assets held by BlackRock's BUIDL, invested in cash, U.S. Treasury bills, and repurchase agreements.

Frax Finance founder Sam Kazemian stated that frxUSD combines the transparency of blockchain technology with the trust and stability of BlackRock's main Treasury products.