The voting period for the inclusion of BlackRock’s USD Institutional Digital Liquidity Fund as reserve assets for Frax Finance’s new stablecoin, Frax USD, runs from December 27th to January 1st, 2025.
Decentralized finance protocol Frax (FRAX) Finance is preparing to launch its new stablecoin frxUSD. But first the protocol must determine whether the USD Institutional Digital Liquidity Fund should be adopted by Blackrock or BUIDL as a reserve asset.
To make this decision, Frax Finance has presented a proposal that presents the features, benefits, and background necessary to understand BUIDL and its function as an on-chain backing asset for Frax USD. Protocol has asked the Frax community to vote on whether the partnership will continue.
“The vote to add Blackrock $BUIDL as the first backing asset for the new stablecoin Frax USD (frxUSD) is live!” wrote Frax Finance in its official X post.
On December 23, Frax Finance announced in a separate X post that BlackRock, the leading asset management firm, has proposed becoming the custodian for Frax USD.
According to the joint proposal, BUIDL is a tokenized product that invests all of its total assets in government-issued assets, namely cash, U.S. Treasury bills, repurchase agreements, bonds, and other obligations. It is promoted as a “blockchain-based investment solution that can be used alongside other investments as a stable asset reserve.”
The benefits of holding BUIDL as a reserve to cover assets listed in the proposal include generating return opportunities,…
