Decentralized stablecoin cryptocurrency protocol Frax Finance has launched a new stablecoin, which it claims provides unprecedented indicators in terms of parameters such as transparency and custody.
The frxUSD stablecoin is a rebranded evolution of the flagship FRAX stablecoin. The relevant information is contained in the Frax Finance press release, which was published on Thursday, January 2. The frxUSD will use BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).
The press release also separately noted that the new stablecoin offers consumers such opportunities as direct redemption of fiat money and improved compliance with the financial systems of the United States.
Frax Finance founder Sam Kazemian stated that within the framework of cooperation with Securitize to access and leverage BlackRock’s BUIDL Fund, a new standard for stablecoins is being set. He also noted that frxUSD combines the transparency and programmability of blockchain technology with the trust and stability of BlackRock’s prime treasury offerings.
Securitize co-founder and chief executive officer Carlos Domingo stated that real-world tokenized assets are an excellent link between decentralized finance and traditional finance, providing unprecedented transparency and efficiency with institutional-grade investments on-chain. It was also noted separately that cooperation with Frax Finance is an example of the next stage of financial evolution. According to Carlos Domingo, in this case, it is being observed example of how traditional and decentralized systems can interact to redefine asset management strategies.
Currently, stablecoins are becoming a tool that bridges the gap between the world of cryptocurrencies and traditional financial technologies.
As we have reported earlier, Ripple Launches New Stablecoin.
