Frax Community Votes on Using BlackRock’s BUIDL as Stablecoin Collateral

Voting to onboard Blackrock’s BUIDL as the first backing asset for Frax Finance’s upcoming frxUSD stablecoin has begun, according to a Dec. 26 X post from the Frax Finance X account. The vote is live on Snapshot and will end on Jan. 1. So far, 2.8 million votes have been cast, and all of them have been in favor of the proposal. If it passes, it will grant the Frax community many benefits, such as yield generation, multiple options for asset transfer, and reduced counter-party risk as industry leaders like Securitize, BlackRock, and Bank of New York Mellon will back the frxUSD stablecoin. BUIDL invests 100% of its total assets in cash, U.S. Treasury bills, notes, and other obligations issued or guaranteed as to principal and interest by the U.S. Treasury, and repurchase agreements secured by such obligations or cash, allowing investors to gain exposure to one of the most liquid markets. To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io