Stablecoin Backed by BlackRock Launched with Tokenized Asset Collateral
DeFi protocol Frax Finance introduced a new dollar-pegged stablecoin backed by tokenized assets from BlackRock’s treasury fund. The initiative aims to bridge the gap between TradFi and DeFi.
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Frax Finance announced the launch of frxUSD, a rebranded version of the FRAX stablecoin pegged to the U.S. dollar. The new asset is collateralized by shares of the tokenized BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which includes cash, U.S. Treasury bills, and repurchase agreements.
As part of the collaboration, BUIDL will serve as the custodian asset for minting and redeeming frxUSD, ensuring a transparent and verifiable collateralization mechanism. According to RWA.xyz, as of January 8, 2024, the BUIDL fund manages approximately $652.5 million in tokenized assets, offering a 4.5% yield to maturity (YTM).
The tokenization of BlackRock’s assets is managed by Securitize, a global leader in real-world asset (RWA) tokenization and the first organization to issue tokenized assets in both the U.S. and Europe.
Carlos Domingo, Co-Founder and CEO of Securitize, emphasized in the press release that tokenized RWAs enhance the connection between TradFi and DeFi, bringing institutional investment into blockchain technologies. “The integration of frxUSD and the BUIDL fund is a clear signal of the transformative potential of tokenization in modern finance,” he stated.
In November 2024, the tokenized real-world asset market surpassed $13 billion. Currently, the sector’s volume reached $15.3 billion, growing by nearly 11% over the past 30 days, according to RWA.xyz.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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