30s Summary

Securitize is proposing using the BlackRock US dollar BUIDL fund as collateral for the Frax USD stablecoin. This offers profit opportunities, transfer options, and improved liquidity. The measure needs community approval before going ahead. Stablecoins are increasingly backed by tokenized real-world assets as this is cost-effective and time-efficient. Ethena Labs” USDtb, backed by BUIDL, achieved $65m in value in one day. BlackRock proposed using BUIDL as collateral in crypto derivative exchanges in October 2024. Since November 2024, BUIDL can be used to create deUSD, Elixir Protocol’s yield-bearing stablecoin.

Full Article

Securitize, a firm that operates as a broker for the tokenized BlackRock US dollar BUIDL fund, has put forth a suggestion to use BUIDL as a safety net of sorts for the Frax USD stablecoin. Basically, this means that the stablecoin would have backing collateral that could provide opportunities for profit, options for transferring, and better liquidity. Furthermore, there’s reduced risk because BlackRock, the largest asset manager in the world, backs BUIDL.

Now, this isn’t a done deal yet—the proposal needs to win a community vote before we will see government securities from the US (which BUIDL invests in) supporting the planned Frax USD stablecoin.

What we’re starting to see more these days is real-world, tokenized assets (basically assets that have been converted into a digital format) being increasingly used as backing collateral for stablecoins. This is mainly because it is cost-effective, offers faster finalization times, and can potentially bring around unique, high-yield profit opportunities for holders.

Shifting focus a bit, Ethena Labs, the brilliant minds behind the USDe synthetic dollar, launched a stablecoin backed by BUIDL called USDtb back in September 2024. USDtb has been performing admirably, having gathered around $65 million in total value within its first day of trading.

Also worth mentioning here is that BlackRock threw a curveball in October 2024 by pushing for BUIDL to be utilised as collateral on crypto derivative exchanges. This could really shake things up in the digital asset derivatives trading sector, which is currently dominated by issuers like Tether and Circle.

As a last update, since November 2024, you can create deUSD, the yield-bearing stablecoin of Elixir Protocol, on Curve (a decentralized exchange), using BUIDL as the collateral. And yes, it’s interchangeable with other stablecoin assets in Curve’s liquidity pools.