BlockBeats news, on January 3, Securitize previously proposed using BlackRock's BUIDL token as the backing for Frax Finance's dollar stablecoin, a proposal that quickly received approval from the governance department, paving the way for the launch of the frxUSD stablecoin. BUIDL will serve as the collateral for minting and redeeming frxUSD.
According to the statement, the stablecoin will be exclusively backed by assets held by BlackRock's BUIDL, which invests in cash, U.S. Treasury bills, and repurchase agreements. Sam Kazemian, founder of Frax Finance, stated in a release: 'FrxUSD combines the transparency and programmability of blockchain technology with the trust and stability of BlackRock's core government bond products.'