Frax Finance, a “decentralized” stablecoin cryptocurrency protocol, has recently announced the launch of a new stablecoin, frxUSD, that will leverage BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), tokenized by Securitize, to deliver a “fully auditable” backing mechanism.
This partnership marks a milestone in the integration of traditional finance and DLT / blockchain tech.
The frxUSD stablecoin, a rebranded evolution of Frax’s flagship FRAX stablecoin, offers “direct fiat redemption capabilities and enhanced compliance with U.S. financial systems.”
As part of the collab, BUIDL will now reportedly become “an enshrined custodian asset for minting and redeeming frxUSD.”
The stablecoin will be backed by assets “held in BlackRock’s BUIDL, which invests in cash, U.S. Treasury bills, and repurchase agreements.”
This ensures full transparency and on-chain audibility, solidifying frxUSD as the first stablecoin to offer seamless “fiat on/off-ramping capabilities via Blackrock’s BUIDL infrastructure.”
Carlos Domingo, Co-Founder and CEO of Securitize said:
“Tokenized real-world assets provide an excellent bridge between traditional finance and decentralized finance, bringing institutional-grade investments on-chain with unprecedented transparency and efficiency. This collaboration exemplifies the next stage in financial evolution, demonstrating how traditional and decentralized systems can work together to redefine asset management strategies. The integration of frxUSD and the BUIDL fund is a clear signal of the transformative potential of tokenization in modern finance.”
Sam Kazemian, Founder of Frax Finance said:
“By partnering with Securitize to access and leverage BlackRock’s BUIDL Fund we are setting a new standard for stablecoins. frxUSD combines the transparency and programmability of blockchain technology with the trust and stability of BlackRock’s prime treasury offerings. This collaboration is a significant step toward bridging traditional finance with decentralized systems.”
As covered, Securitize, the firm focused on tokenizing real-world assets, is driving the compliant digitization of financial assets through blockchain tech.
Securitize, or through its subsidiaries, is a registered broker-dealer (member Finra / SIPC) and operates “a primary marketplace, an alternative trading system, as well as a top 10 transfer agent and has an exempt reporting adviser.”
As noted in the update, Frax aims to be the U.S. digital dollar, establishing itself as the “decentralized stablecoin and DeFi stablecoin infrastructure.”
The Frax stablecoin, a crypto collateralized stablecoin pegged to the U.S. dollar, is scalable, trustless, and “ideologically pure on-chain money.”
Frax — founded by Sam Kazemian and Stephen Moore — is committed to stability, “proven technology, expert governance, and regulatory clarity.”
