BlackRock’s BUIDL to Become Supporting Token for Frax USD Stablecoin

Securitize’s previous proposal to use BlackRock’s BUIDL token as the backing for Frax Finance’s USD stablecoin has been quickly approved by governance, paving the way for the launch of the frxUSD stablecoin. BUIDL will be 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 is invested in cash, U.S. Treasury bills, and repurchase agreements. “FrxUSD combines the transparency and programmability of blockchain technology with the trust and stability of BlackRock’s premier Treasury products,” said Frax Finance founder Sam Kazemian in a statement.