Frax Finance Adds BlackRock BUIDL Token to FraxUSD Reserve Assets

Securitize CEO "Thanks to Frax Community for Supporting the Proposal"

Frax Finance Founder "FraxUSD Utility, Stability, and Convenience to be Enhanced"

Algorithm-based stablecoin project Frax Finance (FXS) announced on the 6th that Carlos Domingo, CEO of the real asset tokenization and security token platform Securitize, expressed gratitude for the active support of the Frax Community.

This follows the Frax Community's approval of Securitize's governance proposal to add the BlackRock U.S. Treasury Tokenized Fund BUIDL to the FraxUSD (frxUSD) support assets. The Frax Community passed the proposal with approximately 45 million votes in favor within two weeks. Securitize acts as the broker-dealer for the BlackRock BUIDL token.

The proposal aims to expose FraxUSD to highly liquid U.S. Treasuries while mitigating reserve risks. FraxUSD can be directly converted into fiat currency through a partnership with stablecoin issuer Paxos, and is backed by safe assets such as cash, U.S. Treasuries, and repurchase agreements held by BlackRock BUIDL. This is intended to enhance DeFi (Decentralized Finance) yields and on-chain efficiency.

Sam Kazemian, founder of Frax Finance, stated, "If BUIDL is added to the support assets of frxUSD, it can enhance the utility, stability, and convenience of FraxUSD," and further diagnosed that "the counterparty risk of FraxUSD reserves can be distinctly mitigated."

He added, "FraxUSD has adopted the BUIDL token as a support asset following ENA's USDtb," and "BUIDL currently manages assets worth over $530 million, most of which are composed of short-term U.S. Treasuries. Now, 1:1 issuance and redemption between BUIDL and frxUSD is possible."