Frax Finance has successfully passed FIP-418, allowing BlackRock's Institutional Digital Liquidity Fund (BUIDL) to back its frxUSD stablecoin. This decision, supported unanimously by the community, aims to offer yield-bearing opportunities while minimizing counterparty risk through BlackRock's extensive asset management. Frax founder Sam Kazemian highlighted this as a bridge between traditional finance and blockchain. The move aligns with a growing trend towards yield-bearing stablecoins, as seen with other projects like Ethena Labs' USDtb and Curve Finance's upcoming deUSD. Demand for such assets is expected to rise as investors seek interest-generating alternatives.