BlockBeats news, on January 3, Securitize previously proposed to use BlackRock's BUIDL token as backing for Frax Finance's dollar stablecoin, a proposal that was quickly approved by the governance department, paving the way for the launch of the frxUSD stablecoin. BUIDL will become the custodial asset for minting and redeeming frxUSD.
According to the statement, the stablecoin will be exclusively backed by assets held by BlackRock's BUIDL, which are invested in cash, U.S. Treasury bonds, and repurchase agreements. Frax Finance founder Sam Kazemian stated in a statement: "FrxUSD combines the transparency and programmability of blockchain technology with the trust and stability of BlackRock's main Treasury products."