Frax Finance, a decentralised stablecoin cryptocurrency protocol, has launched a new stablecoin, dubbed ‘frxUSD’, in a move to offer a secure, transparent, and fully auditable backing mechanism.
The Frax Finance frxUSD stablecoin, a rebranded evolution of its flagship FRAX stablecoin, offers direct fiat redemption capabilities and enhanced compliance with US financial systems. The new stablecoin will leverage BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), tokenised by Securitize.
“By partnering with Securitize to access and leverage BlackRock’s BUIDL Fund we are setting a new standard for stablecoins,” said Sam Kazemian, founder of Frax Finance. “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 decentralised systems.”
As part of the collaboration, BUIDL will become an enshrined custodian asset for minting and redeeming frxUSD. The stablecoin will be uniquely backed by assets held in BlackRock’s BUIDL, which invests in cash, US treasury bills, and repurchase agreements. This aims to ensure full transparency and on-chain audibility, establishing frxUSD as the first stablecoin to offer seamless fiat on and off-ramping capabilities via Blackrock’s BUIDL infrastructure.
“Tokenised real-world assets provide an excellent bridge between traditional finance and decentralised finance, bringing institutional-grade investments on-chain with unprecedented transparency and efficiency,” Carlos Domingo, co-founder and CEO of Securitize, also explained. “This collaboration exemplifies the next stage in financial evolution, demonstrating how traditional and decentralised 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 tokenisation in modern finance.”
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