Securitize previously proposed to use BlackRock's BUIDL token as collateral for the Frax Finance USD stablecoin, a proposal that was quickly approved by the governance department, paving the way for the launch of the frxUSD stablecoin. BUIDL will become the collateral asset for minting and redeeming frxUSD. According to the statement, the stablecoin will be exclusively backed by assets held in BlackRock's BUIDL, which are invested in cash, U.S. Treasury bills, and repurchase agreements.

Frax Finance founder Sam Kazemian stated in a press release, 'FrxUSD combines the transparency and programmability of blockchain technology with the trust and stability of BlackRock's core government bond products.'