Frax launches BlackRock backed, Securitize tokenised stablecoin

Editorial

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Decentralised stablecoin cryptocurrency protocol Frax Finance has launched a new stablecoin, frxUSD, that will leverage BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), and will be tokenised by Securitize.

Securitize will drive the compliant digitisation of financial assets through blockchain technology. Securitize, or through its subsidiaries, is also a registered broker-dealer and operates a primary marketplace, an alternative trading system, as well as a transfer agent and has an exempt reporting adviser. 

The frxUSD stablecoin, a rebrand of Frax’s FRAX stablecoin, will offer direct fiat redemption capabilities and enhanced compliance with US financial systems.

BUIDL will also become an enshrined custodian asset for minting and redeeming frxUSD. This means that the stablecoin will be uniquely backed by assets held in BlackRock’s BUIDL, which invests in cash, US Treasury bills, and repurchase agreements.

This bolsters transparency and on-chain audibility, solidifying frxUSD as the first stablecoin to offer seamless fiat on/off-ramping capabilities via Blackrock’s BUIDL infrastructure.

Carlos Domingo, co-founder and CEO of Securitize, says: “Tokenized real-world assets provide an excellent bridge between traditional finance and decentralized finance, bringing institutional-grade investments on-chain with unprecedented transparency and efficiency. This collaboration exemplifies the next stage in financial evolution, demonstrating how traditional and decentralized 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 tokenization in modern finance.”

Sam Kazemian, founder of Frax Finance, adds: “By partnering with Securitize to access and leverage BlackRock’s BUIDL Fund we are setting a new standard for stablecoins. 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 decentralized systems.”