BlackRock has proposed adding its tokenized U.S. Treasury fund, BUIDL, as a reserve asset for Frax's stablecoin treasury.

BlackRock’s digital assets unit has submitted a proposal on Frax’s governance forum to make BUIDL, the BlackRock USD Institutional Digital Liquidity Fund tokenized by Securitize, an official reserve asset in the Frax stablecoin treasury. The idea is that Frax’s stablecoin system would hold BUIDL as part of its backing, tapping directly into a pool of tokenized U.S. Treasury bills, cash, and repos managed by the world’s largest asset manager. BUIDL is BlackRock’s on‑chain fund that provides blockchain-based claims on a portfolio of short‑term U.S. government securities and cash equivalents, with the token representing shares in a regulated fund and distributing yield in kind. It has become one of the largest real‑world-asset (RWA) tokenization products, with assets reportedly in the multi‑billion dollar range, and is already used as backing for other stablecoin and payment projects that want transparent, tokenized Treasury exposure. Frax, which has repositioned its stablecoin product line (including the frxUSD rebrand of its flagship FRAX stablecoin) around “fully backed by institutional‑grade tokenized U.S. Treasury funds” in collaboration with firms like BlackRock, is effectively being asked to formalize BUIDL as a core, on‑chain reserve for its dollar‑pegged assets. If approved by Frax governance, the move would deepen the protocol’s integration with traditional finance by embedding a regulated BlackRock fund into the on‑chain collateral mix backing its stablecoins. For Frax, this would further align the project with a broader industry trend where stablecoins and other digital dollars are moving from opaque or crypto‑only collateral to tokenized Treasuries and money‑market instruments as reserve assets. For BlackRock, gaining a formal role inside Frax’s reserve architecture would extend BUIDL’s position as infrastructure for the “digital dollar” ecosystem, complementing its parallel push to launch additional tokenized Treasury and stablecoin‑reserve vehicles.

✨ AI-generated background, compiled from web sources — not editorial content.

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