Frax Finance (FXS) Announces Securitize CEO Carlos Domingo's Gratitude for the Community's Support of the Proposal

Frax Finance Founder Sam Kazemian "FraxUSD Utility, Stability, and Convenience to be Enhanced"

Real asset tokenization and security token platform Securitize CEO Carlos Domingo expressed gratitude on the 6th for the active support of the Frax Community.

This follows the Frax Community’s approval of Securitize’s governance proposal to add the BlackRock U.S. Treasury Tokenized Fund BUIDL to the FraxUSD (frxUSD) support assets. The Frax Community passed the proposal with approximately 45 million votes in favor within two weeks.

Securitize acts as the broker-dealer for the BlackRock BUIDL token.

The proposal aims to expose FraxUSD to highly liquid U.S. Treasuries while mitigating reserve risks. FraxUSD can be directly converted into fiat currency through a partnership with stablecoin issuer Paxos, and is backed by safe assets such as cash, U.S. Treasuries, and repurchase agreements held by BlackRock BUIDL. This is intended to enhance DeFi (Decentralized Finance) yields and on-chain efficiency.

"If BUIDL is added to the support assets of frxUSD, it can enhance the utility, stability, and convenience of FraxUSD," said Sam Kazemian, founder of Frax Finance, further diagnosing that "the counterparty risk of FraxUSD reserves can be distinctly mitigated."

"FraxUSD has adopted the BUIDL token as a support asset following ENA's USDtb," he added, and "BUIDL currently manages assets worth over $530 million, most of which are composed of short-term U.S. Treasuries. Now, 1:1 issuance and redemption between BUIDL and frxUSD is possible."