Securitize’s Proposal Approved for frxUSD Stablecoin

Securitize’s proposal to use BlackRock’s BUIDL token as backing for Frax Finance’s USD stablecoin has gained swift governance approval, enabling the launch of the frxUSD stablecoin.

“FrxUSD combines the transparency and programmability of blockchain technology with the trust and stability of BlackRock’s prime treasury offerings,” stated Frax Finance founder Sam Kazemian.

The announcement came less than two weeks after Securitize proposed adding BUIDL as the backing token for frxUSD. Early feedback on this governance proposal suggested strong support.

“BUIDL will serve as a chief custodian asset for minting and redeeming frxUSD, being uniquely backed by assets in BlackRock’s BUIDL that invests in cash, U.S. Treasury bills, and repurchase agreements,” according to Thursday’s statement.

Frax’s frxUSD will enable direct fiat conversions through a partnership with Paxos and may benefit from Frax’s pursuit of access to a U.S. Federal Reserve Master Account.

In addition, Ethena’s USDtb stablecoin is also backed by BlackRock’s BUIDL fund.