Bella Protocol's BUIDL will become the support token for Frax USD stablecoin

Securitize previously proposed to use BlackRock's BUIDL token as the support for Frax Finance's US dollar stablecoin, a proposal that has quickly been approved by the governance department, paving the way for the launch of frxUSD stablecoin. BUIDL will become the custodial asset for minting and redeeming frxUSD.

According to the statement, this stablecoin will be exclusively backed by assets held by BlackRock's BUIDL, which are invested in cash, U.S. Treasury bills and repurchase agreements. Sam Kazemian, founder of Frax Finance stated in an announcement: "FrxUSD combines blockchain technology's transparency and programmability with trustworthiness and stability of BlackRock’s main government bond products."