BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is being considered by the Frax
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Finance community as a reserve asset for its planned stablecoin, Frax USD (frxUSD).
The vote opened on December 26 and will remain active until January 1, 2025. So far, all votes and comments in the discussion have strongly supported the proposal.
The proposal was initially introduced by Securitize, the broker-dealer for BlackRock’s BUIDL. In a discussion on December 22, a user named achaffee emphasized how tokenized real-world assets (RWAs) could connect traditional finance with decentralized finance (DeFi).
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Achaffee noted that these efforts represent a shift in how decentralized players manage their financial resources and explore new strategies across industries. They stated:
In the past 9 months alone, we’ve seen major players including DAOs and decentralized protocols put out large, public RFPs to explore how they can most effectively bolster their treasuries or back their stablecoins with RWAs.
Furthermore, supporters highlight several potential benefits of using BUIDL. These include creating opportunities for earning yields, improving liquidity, enhancing transfer options, and reducing counterparty risks thanks to BlackRock’s established backing.
As Frax Finance looks to strengthen its stablecoin with BlackRock’s backing, Floki
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DAO has recently submitted a $2.8 million proposal to bring a Floki ETP to European investors. What makes the ETP worth the wait? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
