Frax Finance is considering BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) as a reserve asset for its proposed stablecoin, Frax USD (frxUSD). The community vote, open until January 1, 2025, shows unanimous support so far. The proposal, backed by Securitize, aims to enhance yield opportunities, liquidity, and reduce counter-party risk by leveraging BlackRock's backing. BUIDL, which invests in US government securities, has surpassed half a billion dollars in assets since its March launch. This move highlights the growing trend of integrating real-world assets into DeFi.
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