Protocol for a decentralized stablecoin cryptocurrency BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) will be leveraged by Frax Finance's new stablecoin, frxUSD, which will be tokenized by Securitize.

Using blockchain technology, Securitize will spearhead the compliant digitization of financial assets. In addition to operating a primary marketplace, an alternative trading system, a transfer agent, and an exempt reporting advisor, Securitize, or its subsidiaries, is a licensed broker-dealer.

Rebranded from Frax's FRAX stablecoin, the frxUSD stablecoin will provide improved compliance with US financial systems and the ability to redeem in dollars.

Additionally, BUIDL will be a recognized custodian asset for the minting and redemption of FXUSD. This implies that the assets held in BlackRock's BUIDL, which makes investments in cash, US Treasury notes, and repurchase agreements, will provide a unique backing for the stablecoin.

By improving on-chain audibility and transparency, this makes frxUSD the first stablecoin to provide smooth fiat on/off-ramping using Blackrock's BUIDL infrastructure.

"Tokenized real-world assets offer a great bridge between traditional finance and decentralized finance, bringing institutional-grade investments on-chain with unprecedented transparency and efficiency," explains Carlos Domingo, co-founder and CEO of Securitize. This partnership serves as an example of the future phase of financial development, showing how decentralized and traditional systems may cooperate to rethink asset management tactics. An obvious indication of the revolutionary potential of tokenization in contemporary banking is the merger of the BUIDL fund and the frxUSD.

Frax Finance founder Sam Kazemian continues, "We are establishing a new benchmark for stablecoins by collaborating with Securitize to access and use BlackRock's BUIDL Fund. The confidence and stability of BlackRock's premier treasury products are combined with the transparency and programmability of blockchain technology in frxUSD. This partnership is a big step in connecting decentralized systems with traditional banking.