Securitize proposes adding BlackRock's BUIDL token as Frax USD stablecoin backing
Powered by @unfolded- Securitize has proposed adding BlackRock's BUIDL token as a backing asset for the upcoming relaunch of the Frax USD stablecoin, aiming to enhance its utility and reduce counterparty risk.
- The proposal has received positive early feedback from Frax DAO members, indicating strong support for the integration of traditional finance (TradFi) with decentralized finance (DeFi).
- The revamped Frax USD will feature a new mint-redeem system and will be backed by a combination of stablecoin tokens, cash equivalents, and potentially BUIDL tokens, although the exact percentage is yet to be determined.
- Competing proposals from Superstate could also influence the backing of Frax USD, suggesting a collaborative approach to ensuring the stability and growth of the stablecoin.