Frax and BlackRock Collaborate on Innovative Securitize Tokenized Stablecoin Project

Introduction

Stablecoin cryptocurrency protocol that is decentralized Frax Finance has introduced a new stablecoin, frxUSD, which will be tokenized by Securitize and will be built upon BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).

Through blockchain technology, Securitize will facilitate the compliant digitization of financial assets. Securitize, or its subsidiaries, is a registered broker-dealer that administers a primary marketplace, an alternative trading system, a transfer agent, and an exempt reporting adviser.

Frax’s FRAX stablecoin will be rebranded as the frxUSD stablecoin, which will provide direct fiat redemption capabilities and improved compliance with US financial systems.

Additionally, BUIDL will be established as a custodial asset for the purpose of minting and redeeming frxUSD. This implies that the stablecoin will be exclusively supported by assets held in BlackRock’s BUIDL, which invests in cash, US Treasury bills, and repurchase agreements.

This enhances transparency and on-chain audibility, thereby solidifying frxUSD as the first stablecoin to provide seamless fiat on/off-ramping capabilities through Blackrock’s BUIDL infrastructure.

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Industry Comments

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.”

FAQs

1. What is frxUSD and how is it different from FRAX?
frxUSD is the rebranded version of Frax Finance’s stablecoin FRAX. Unlike its predecessor, frxUSD offers direct fiat redemption capabilities and improved compliance with U.S. financial systems. It is tokenized by Securitize and backed exclusively by assets held in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). This ensures enhanced transparency, regulatory adherence, and seamless fiat on/off-ramping capabilities.

2. How does Securitize contribute to frxUSD’s ecosystem?
Securitize facilitates compliant digitization of financial assets for frxUSD using blockchain technology. As a registered broker-dealer and transfer agent, Securitize ensures the operational framework for issuing, trading, and redeeming frxUSD aligns with regulatory standards. This integration enhances the stability and reliability of the frxUSD ecosystem.

3. What is the role of BlackRock’s BUIDL in frxUSD?
BlackRock’s BUIDL serves as the custodial asset for minting and redeeming frxUSD. BUIDL invests in cash, U.S. Treasury bills, and repurchase agreements, ensuring the stablecoin’s backing by high-quality liquid assets. This structure improves transparency, regulatory compliance, and on-chain audibility, making frxUSD a robust and trustworthy stablecoin option.

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Conclusion

frxUSD represents a transformative step for stablecoins, combining robust compliance, transparency, and accessibility. By leveraging Securitize’s blockchain-driven digitization and BlackRock’s BUIDL infrastructure, Frax Finance has created a stablecoin that bridges traditional finance with the crypto ecosystem. The exclusive backing by high-quality assets ensures frxUSD’s stability and audibility, while direct fiat redemption capabilities enhance user experience. As the first stablecoin to integrate seamlessly with BlackRock’s BUIDL, frxUSD sets a new standard for compliant and transparent digital currencies in the evolving financial landscape.