Frax has struck a deal with BlackRock to use its Institutional Digital Liquidity Fund (BUIDL) as collateral for the anticipated frxUSD stablecoin. Known as FIP-418, this proposal gained unanimous endorsement from the Frax community during a six-day vote. By tapping into BlackRock’s BUIDL fund, which manages assets over $648 million, frxUSD holders are set to benefit from yield-generating opportunities.
This strategic move positions Frax to leverage one of the largest fund managers globally, potentially boosting the credibility and viability of its stablecoin offering. Such partnerships indicate a growing intersection between traditional finance and the crypto world.
