The brokerage firm Securitize has proposed using the tokenized fund BlackRock Institutional Digital Liquidity Fund (BUIDL) as collateral for the stablecoin Frax USD.$UTK $ALGO $1000SATS
According to the proposal, using BUIDL as a reserve asset for Frax USD opens up opportunities for income generation, provides higher liquidity, and reduces counterparty risks due to the backing of the world's largest asset manager BlackRock.
The BUIDL fund invests in U.S. government securities. The proposal requires community approval before adding BUIDL as a reserve asset.
Interest in tokenized real assets like BUIDL is growing due to their efficiency. Previously, BlackRock used BUIDL to back crypto derivatives and integrated it with platforms such as Binance, OKX, and Deribit. The Securitize proposal could pose a challenge to dominant stablecoin issuers like Tether and Circle.#2024withBinance #2025Outlook