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Frax Finance Vote on BlackRock’s Fund as Reserve for Frax USD Now Live
A significant proposal has recently gone live in the Frax Finance community, seeking to adopt BlackRock’s BUIDL fund as a reserve asset for its native stablecoin, Frax USD. The idea is to integrate institutional-grade investments into DeFi, paving the way for decentralized finance (DeFi) platforms to engage with traditional financial institutions.
The proposal has garnered substantial support from the Frax Finance community, and it seems that many users are excited about the potential implications of this move. One user, achaffee, noted that tokenized real-world assets (RWAs) could serve as a crucial bridge between traditional finance and DeFi, enabling the on-chain adoption of institutional-grade investments.
The proposed integration would involve utilizing BlackRock’s BUIDL fund, which has already exceeded half a billion dollars in assets under management (AUM) in less than four months since its launch. The fund is designed to provide stable returns by investing primarily in US government securities and offers daily accrued dividends directly to investors through a partnership with Securitize.
By adopting BlackRock’s BUIDL as a reserve asset for Frax USD, the proposal aims to enhance the stability and utility of the stablecoin while fostering greater cooperation between traditional finance institutions and DeFi platforms.
Source: crypto-economy.com
