Frax Finance Eyes BlackRock’s BUIDL to Power Its Planned Stablecoin, Frax USD

The vote opened on December 26 and will remain active until January 1, 2025. So far, all votes and comments in the discussion have strongly supported the proposal.

The proposal was initially introduced by Securitize, the broker-dealer for BlackRock’s BUIDL. In a discussion on December 22, a user named achaffee emphasized how tokenized real-world assets (RWAs) could connect traditional finance with decentralized finance (DeFi).

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Achaffee noted that these efforts represent a shift in how decentralized players manage their financial resources and explore new strategies across industries. They stated:

In the past 9 months alone, we’ve seen major players including DAOs and decentralized protocols put out large, public RFPs to explore how they can most effectively bolster their treasuries or back their stablecoins with RWAs.

Furthermore, supporters highlight several potential benefits of using BUIDL. These include creating opportunities for earning yields, improving liquidity, enhancing transfer options, and reducing counterparty risks thanks to BlackRock’s established backing.

As Frax Finance looks to strengthen its stablecoin with BlackRock’s backing, Floki FLOKI $0.0000244 DAO has recently submitted a $2.8 million proposal to bring a Floki ETP to European investors. What makes the ETP worth the wait? Read the full story.