Official announcements from Frax Finance regarding the blockchain network used for frxUSD transactions

BlackRock's BUIDL Token to Back Frax's frxUSD Stablecoin with Ethereum and Paxos Integration

Jan 3, 2025, 03:59 AM

BlackRock's BUIDL token has been approved as the primary backing asset for Frax Finance's new stablecoin, frxUSD. The decision was made following the approval of proposal FIP-418 by Frax's decentralized autonomous organization (DAO). The frxUSD stablecoin will combine the transparency of blockchain technology with the stability of BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), which includes assets such as cash, U.S. Treasury bills, and repurchase agreements. The stablecoin will also feature fiat on-and-off ramping capabilities through Paxos, allowing direct fiat conversions for users. The Ethereum network will be utilized to enhance transparency. Securitize played a key role in proposing the use of BUIDL as collateral. BlackRock's BUIDL fund, with over $400 million under management, continues to expand its influence in the tokenized real-world assets sector.