Securitize suggests that Frax USD adopt BlackRock's BUIDL as a supporting asset

ChainCatcher reports that, according to The Block, Securitize Markets has drafted a governance proposal for Frax Finance as the transfer agent and broker of BlackRock's USD Institutional Digital Liquidity Fund and its BUIDL tokens. The proposal states: "In addition to providing utility, relative safety, and convenience for Frax USD, it can also significantly reduce its reserve trading counterparty risk by cooperating with BlackRock."

If the proposal is approved, Frax USD will use BUIDL tokens as supporting assets like Ethena's USDtb stablecoin. BUIDL currently manages assets worth more than $530 million, most of which are short-term US Treasury bills.

Although the proposal has not yet been put to a vote, early reactions from members of the Frax Finance DAO have so far been generally positive. "I fully support this proposal because it brings together the best of TradFi and DeFi. I believe this partnership will shape the future of finance."