BlackRock’s BUIDL Fund Expands Into the Stablecoin Market Amid Growing Competition

Securitize has proposed including BlackRock's US Dollar Institutional Digital Liquidity Fund (BUIDL) as collateral for the Frax USD stablecoin

BlackRock’s BUIDL fund is expanding into the stablecoin market through several partnerships and initiatives.

One recent development is a proposal by Securitize to include BUIDL as collateral for the Frax USD stablecoin. This move would further integrate BUIDL into the DeFi ecosystem and provide several benefits, according to Securitize.

As the world’s largest asset manager, BlackRock’s involvement in BUIDL and its potential integration with Frax USD highlights the growing interest and competition in the stablecoin market.

Here's a summary of the key points:

* Securitize has proposed using BlackRock’s BUIDL fund as collateral for the Frax USD stablecoin.

* This integration would provide several benefits, including enhanced yield opportunities, improved liquidity, streamlined transfer options, and lower counterparty risk.

* The proposal highlights BUIDL's increasing role in the digital asset space and the broader trend of using tokenized real-world assets (RWAs) as reserve assets for stablecoins.

* BUIDL's entry into the stablecoin market has already seen success through collaborations such as the creation of the USDtb stablecoin by Ethena Labs.

* In a separate development, Hashnote's USYC token recently surpassed BUIDL in market valuation, reaching over $1.2 billion through its interaction with the Usual Protocol's USD0 stablecoin.

* BlackRock is exploring ways to include BUIDL as collateral on major cryptocurrency derivatives exchanges such as Binance, OKX, and Deribit.

* The fund has also seen notable integrations within the DeFi space, including serving as supporting collateral for the deUSD yield-bearing stablecoin on the Curve decentralized exchange.

* The proposed integration with Frax USD marks another potential milestone in BUIDL's evolution, with the proposal emphasizing the fund's investments in US government securities and BlackRock's institutional infrastructure to support stablecoin operations.

* This development highlights the increasing importance of integration capabilities and yield-generating potential in determining market leadership within the tokenized Treasury market.