Frax Launches frxUSD Stablecoin, Backed by BlackRock’s BUIDL
Frax Finance, a decentralized stablecoin cryptocurrency protocol, announced the launch of a new U.S. dollar-pegged stablecoin, frxUSD, that will leverage BlackRock’s U.S. dollar Institutional Digital Liquidity Fund (BUIDL), tokenized by Securitize.
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 collaboration, BUIDL will 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.
“By partnering with Securitize to access and leverage BlackRock’s BUIDL Fund we are setting a new standard for stablecoins,” said Sam Kazemian, co-founder of Frax Finance. “frxUSD combines the transparency and programmability of blockchain technology with the trust and stability of BlackRock’s prime treasury offerings.”