According to ChainCatcher, reported by The Block, Securitize Markets, as the transfer agent and broker for BlackRock's U.S. dollar institutional digital liquidity fund and its BUIDL token, drafted the Frax Finance governance proposal. The proposal states: 'In addition to providing utility, relative safety, and convenience for Frax USD, it can significantly reduce counterparty risk in its reserves through collaboration with BlackRock.'
If the proposal is approved, Frax USD will adopt BUIDL tokens as supporting assets, similar to stablecoins like Ethena's USDtb. BUIDL currently manages assets worth over $530 million, most of which are short-term U.S. Treasury bills.
Although the proposal has not yet been put to a vote, early reactions from members of the Frax Finance DAO have been generally positive so far. 'I fully support this proposal as it brings together the essence of TradFi and DeFi. I believe this collaboration will shape the future of the financial industry.'