Securitize, the brokerage firm for the tokenized BlackRock US Dollar Institutional Digital Liquidity Fund (BUIDL), has submitted an enhancement proposal to add BUIDL as collateral for the Frax USD stablecoin.
The proposal states that BUIDL will provide yield opportunities, deeper liquidity and transfer options, while reducing counterparty risk, thanks to its backing by BlackRock, the world’s largest asset manager.
The proposal will be subject to a community vote before BUIDL can be added as a reserve asset for the Frax USD stablecoin.
Tokenized real-world assets (RWAs) are gaining popularity for stablecoins due to their cost-effectiveness and high-yield opportunities.
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