On December 23rd, Securitize, the broker dealer of BlackRock’s BUIDL tokenized money market fund, submitted a governance proposal calling for the addition of BUIDL tokens as reserve assets for Frax’s upcoming Frax USD stablecoin.
The proposal states that in addition to providing practicality, relative safety, and convenience for Frax USD, Frax USD can also significantly reduce its reserve counterparty risk through cooperation with BlackRock.
If the proposal is passed, Frax USD will emulate Ethena’s stablecoins such as USDtb and use BUIDL tokens as supporting assets. BUIDL currently manages assets worth over $530 million, most of which are short-term US Treasury bills.

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