In just the last 9 months, we have witnessed prominent players such as DAOs and decentralized protocols put out large, public RFPs to examine.
As per the Dune Analytics data aggregated by 21Shares, around $3.4 billion worth of tokenized treasury funds are now on-chain.
Ethena Labs, the creator behind Ethena, manages the USD synthetic dollar, revealed on September 26 that it had a BUIDL-supported stablecoin in the industry.
The Frax Finance community has voted in favor of adopting BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) as a reserve asset for the offered stablecoin Frax USD (frxUSD) is live now.
Commenced on December 26, votes cast by the Frax Finance community token-holders have already been in favor of the offer. The comments from the discussion are also in favor. The voting will not be closed until January 1, 2025.
As per the vote summary, the profit of passing the proposal for Frax USD may consist of making yield opportunities, extensive liquidity, transfer options, and less counter-party risk because of supporting BlackRock.
Bridging Traditional Finance and DeFi
A discussion was held on December 22 regarding the proposal, created mainly by the real-world asset tokenization platform Securitize, the intermediary for BlackRock’s BUIDL, a user with the handle called achaffee mentioned that the step would aid bridge traditional financial and DeFi.
As per achaffee, tokenized real-world assets (RWAs) offer a great bridge between traditional financial and DeFi by driving institutional-grade investments on-chain.
In just the last 9 months, we have witnessed prominent players such as DAOs and decentralized protocols put out large, public RFPs to examine how they can most successfully boost their treasuries or support their stablecoins with RWAs, as mentioned by achaffee.
Also, these quick explorations mark a notable evolution in how decentralized players deal with their financial resources and review cross-industry asset strategies, they further mentioned. BUIDL hit more than half a billion dollars in assets under management (AUM) in not more than four months after its introduction on March 15.
What does the data say?
The price is pegged at 1:1 with the United States dollar and it remunerates daily raised dividends directly to investors each month by a collaboration with Securitize. The fund is put in the government securities of the United States.
As per the Dune Analytics data aggregated by 21Shares, around $3.4 billion worth of tokenized treasury funds are now on-chain. Frax is not the first to be considering a potential BUIDL-supported stablecoin.
Ethena Labs, the creator behind Ethena, manages the USD synthetic dollar, revealed on September 26 that it had a BUIDL-supported stablecoin in the industry. The stablecoin, called USDtb, is a different product offering from Etherna’s USDe.
USDtb was live on December 16 and has stemmed around $89 million in total value locked (TVL), as per the data provided by DefiLlama.
