Frax aims to establish itself as the US digital dollar, positioning itself as “the world’s most innovative decentralized stablecoin and DeFi stablecoin infrastructure.”
Decentralized stablecoin protocol Frax Finance has introduced a new stablecoin, frxUSD, which will utilize BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and will be tokenized by Securitize.
Securitize is set to facilitate the compliant digitization of financial assets through blockchain technology. As a registered broker-dealer, it operates a primary marketplace, an alternative trading system, and serves as a transfer agent while functioning as an exempt reporting adviser.
The frxUSD stablecoin is a rebranding of Frax’s FRAX stablecoin and will provide direct fiat redemption capabilities, enhancing compliance with US financial systems. Additionally, BUIDL will serve as a secure custodian asset for minting and redeeming frxUSD, with the stablecoin uniquely backed by assets held in BlackRock’s BUIDL fund, which invests in cash, US Treasury bills, and repurchase agreements.
This arrangement enhances transparency and on-chain audibility, making frxUSD the first stablecoin to offer seamless fiat on/off-ramping capabilities through BlackRock’s BUIDL infrastructure.
Carlos Domingo, co-founder and CEO of Securitize, stated: “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 signals the transformative potential of tokenization in modern finance.”
Sam Kazemian, founder of Frax Finance, remarked: “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 marks a significant step toward bridging traditional finance with decentralized systems.”