TechFlow news, December 23 — According to The Block, Securitize Markets, serving as the transfer agent and broker-dealer for BlackRock's Institutional Digital Liquidity Fund and its BUIDL token, has authored a governance proposal for Frax Finance. The proposal states: "Beyond providing utility, relative safety, and convenience for Frax USD, Frax USD can significantly reduce counterparty risk in its reserves through collaboration with BlackRock."
If approved, Frax USD would join stablecoins like Ethena’s USDtB in using the BUIDL token as a backing asset. BUIDL currently manages over $530 million in assets, predominantly short-term U.S. Treasury bills.
Although the proposal has not yet been put to a vote, early reactions from Frax Finance DAO members have been largely positive. "Fully support this proposal, as it brings together the best of TradFi and DeFi. I believe this partnership will shape the future of finance."
