Frax Finance has launched frxUSD, a rebranded version of its FRAX stablecoin, aiming to set new standards in decentralized finance (DeFi) and stablecoin transparency.

Backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and tokenized by Securitize, frxUSD integrates traditional financial infrastructure with blockchain innovation. The stablecoin will offer direct fiat redemption capabilities and enhanced compliance with U.S. financial regulations, marking a significant leap forward in stablecoin design.

Securitize, a leader in blockchain-based asset digitization, will oversee the compliant tokenization of frxUSD. The company’s extensive financial credentials include operating as a registered broker-dealer, managing a primary marketplace and alternative trading system, and serving as a transfer agent. With BUIDL as a core custodian asset, frxUSD is uniquely backed by a portfolio of cash, U.S. Treasury bills, and repurchase agreements, ensuring unmatched transparency and on-chain audibility. This infrastructure makes frxUSD the first stablecoin to offer seamless fiat on/off-ramping directly through BlackRock’s liquidity fund.

Frax Finance Founder Sam Kazemian highlighted the partnership's transformative impact, stating, "frxUSD combines the transparency and programmability of blockchain with the trust and stability of BlackRock's prime treasury offerings." Carlos Domingo, CEO of Securitize, emphasized the innovation’s broader implications, noting that the tokenization of real-world assets bridges traditional and decentralized finance with enhanced transparency and efficiency. Together, Frax, Securitize, and BlackRock are redefining the future of stablecoins and asset management in a rapidly evolving financial landscape.