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Black Rock USD Institutional Digital Liquidity Fund (Builds) deepened its position in the digital asset space as Frax Finance approved it as collateral for its soon-to-be-launched frxUSD stablecoin, according to a statement on January 2. statement.
ForexUSD
frxUSD is Frax FinanceNewly rebranded stablecoin that offers direct fiat redemption and enhanced regulatory compliance.
Sam KazemianFounder of Frax Finance said:
“frxUSD combines the transparency and programmability of blockchain technology with the trust and stability of BlackRock’s premier treasury offerings.”
Through this partnership, BUIDL will act as a primary reserve asset, supporting the minting and redemption of frxUSD. The stablecoin will be backed by assets managed within BlackRock’s BUIDL, including cash holdings, US Treasury bills and repurchase agreements.
This structure promises strong transparency, as all transactions are recorded on-chain. Additionally, it offers unique capabilities to activate and deactivate fiat currencies, seamlessly connecting traditional and decentralized financial systems.
BUIDL’s expanding horizons
BlackRock’s BUIDL fund has He emerged as a leader In the tokenized real assets sector, with over $400 million under management.
Over the past months, BUIDL extended its scope Beyond Ethereum to blockchains like ribbed, resolution, Avalanche, optimismand Apartments. It also supports other projects, including: Athens stablecoin USDtb.
Efforts are also underway to strengthen it Integration into the crypto landscape Through partnerships that place the fund as collateral for derivatives trading on central exchanges.
These developments are consistent with BlackRock’s strategy to make institutional-level investment options more accessible through decentralized platforms.
The growth of BUIDL is not surprising, considering that tokenized real assets such as US Treasuries are increasingly gaining traction across blockchain ecosystems.
According to Dune Analytics DataMore than $3.5 billion of these assets are tokenized on networks such as Ethereum, Solana, and Polygon. This increased adoption reflects the financial sector’s ongoing shift towards blockchain-enabled solutions.
Carlos Domingo, CEO of Securitize, said:
“Tokenized real-world assets provide an excellent bridge between traditional finance and… decentralization financing, providing institutional level investments across the chain with unprecedented transparency and efficiency.”
