Connect with us

Crypto

Frax Partners With Securitize on New Stablecoin | PYMNTS.com

Published

on

Frax Partners With Securitize on New Stablecoin | PYMNTS.com

Decentralized stablecoin cryptocurrency protocol Frax Finance launched a stablecoin that it said offers “unprecedented” transparency and custody.

The frxUSD stablecoin is a rebranded evolution of the company’s flagship FRAX stablecoin and will leverage BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), tokenized by Securitize, Frax said in a Thursday (Jan. 2) press release.

The new stablecoin offers direct fiat redemption capabilities and enhanced compliance with U.S. financial systems, according to the release.

“By partnering with Securitize to access and leverage BlackRock’s BUIDL Fund we are setting a new standard for stablecoins,” Frax Finance Founder Sam Kazemian said in the release. “frxUSD combines the transparency and programmability of blockchain technology with the trust and stability of BlackRock’s prime treasury offerings.”

In this new collaboration around the stablecoin, BUIDL will become an enshrined custodian asset for minting and redeeming frxUSD; the stablecoin will be backed by cash, U.S. Treasury bills and repurchase agreements held in BUIDL; and frxUSD will offer seamless fiat on/off-ramping capabilities via the BUIDL infrastructure, per the release.

Advertisement

“Tokenized real-world assets provide an excellent bridge between traditional finance and decentralized finance, bringing institutional-grade investments on-chain with unprecedented transparency and efficiency,” Securitize Co-Founder and CEO Carlos Domingo said in the release. “This collaboration exemplifies the next stage in financial evolution, demonstrating how traditional and decentralized systems can work together to redefine asset management strategies.”

Stablecoins are emerging as a powerful tool bridging the gap between traditional financial technology and the world of cryptocurrencies, PYMNTS reported in October.

As cryptocurrencies designed to maintain a stable value by being pegged to a reserve asset (usually a fiat currency like the U.S. dollar or the euro), stablecoins are able to offer the efficiency and transparency of blockchain technology while providing the familiarity and stability of fiat currencies.

In another, separate development, it was reported Thursday that stablecoin leader Tether has seen its market value decline amid new European Union (EU) cryptocurrency rules, with the company’s USDT having its sharpest weekly drop in two years.

USDT had reached a record market value in mid-December but declined after several EU-based exchanges and Coinbase removed the stablecoin due to compliance issues with the EU’s Markets in Crypto-Assets (MiCA) regulation that took full effect on Dec. 30.

Advertisement
Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Crypto

Truth Social Files for Cryptocurrency Blue-Chip ETF

Published

on

Truth Social Files for Cryptocurrency Blue-Chip ETF

Truth Social, the social media platform backed by former U.S. President Donald Trump, has submitted an application for a cryptocurrency blue-chip ETF S-1 filing. This move marks a significant shift for the platform, which has been primarily known for its social media presence, into the realm of cryptocurrency investments. The filing indicates that Truth Social is aiming to capitalize on the growing interest in digital assets, particularly among its user base, which includes a significant number of individuals who are already engaged with cryptocurrencies.

The Trust’s assets are primarily composed of Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), and Cronos (CRO) held by the Trustee. Under the terms of the Trust Agreement, the Trust will allocate its assets to a percentage of the portfolio assets (allocation ratio) initially expected to be approximately 70% Bitcoin, 15% Ethereum, 8% SOL, 5% CRO, and 2% XRP. This allocation reflects a strategic focus on blue-chip cryptocurrencies, which are seen as more stable and less speculative compared to smaller, more volatile tokens.

The decision to file for a cryptocurrency ETF comes at a time when the cryptocurrency market is experiencing renewed interest. The market has seen a resurgence in activity, driven by factors such as declining interest rates and a more crypto-friendly regulatory environment. This shift has led many investors to reconsider their positions in cryptocurrencies, particularly in blue-chip tokens like Bitcoin and Ethereum.

The filing for a cryptocurrency ETF is a significant step for Truth Social, as it allows the platform to offer its users a more diversified investment option. By providing access to a blue-chip cryptocurrency ETF, Truth Social can attract a broader range of investors who are looking for a more secure and regulated way to invest in digital assets. This move also positions Truth Social as a forward-thinking platform that is adapting to the evolving financial landscape, where cryptocurrencies are becoming an increasingly important part of the investment ecosystem.

The submission of the S-1 filing is a crucial step in the process of launching an ETF. It involves providing detailed information about the fund’s structure, investment strategy, and risk factors to regulatory authorities. Once approved, the ETF will allow investors to gain exposure to a basket of blue-chip cryptocurrencies without having to directly purchase and manage individual tokens. This can be particularly appealing to investors who are new to the cryptocurrency market or who prefer the convenience and security of an ETF.

Advertisement

The filing also highlights the growing integration of cryptocurrencies into mainstream financial products. As more platforms and companies enter the cryptocurrency space, the demand for regulated and secure investment options is likely to increase. This trend is driven by the recognition that cryptocurrencies offer unique benefits, such as decentralization, transparency, and the potential for high returns, which make them an attractive addition to traditional investment portfolios.

In summary, Truth Social’s submission of a cryptocurrency blue-chip ETF S-1 filing is a strategic move that reflects the platform’s commitment to innovation and its recognition of the growing importance of cryptocurrencies in the financial landscape. By offering a regulated and secure investment option, Truth Social can attract a broader range of investors and position itself as a leader in the evolving world of digital assets.

Continue Reading

Crypto

Top Cryptocurrency Stocks To Add to Your Watchlist

Published

on

Top Cryptocurrency Stocks To Add to Your Watchlist
Robinhood Markets, Galaxy Digital, Bit Origin, Bitdeer Technologies Group, HIVE Digital Technologies, Bitfarms, and Bitcoin Depot are the seven Cryptocurrency stocks to watch today, according to MarketBeat’s stock screener tool. Cryptocurrency stocks are shares of publicly traded companies whose co
Continue Reading

Crypto

Adecoagro Partners With Tether to Pioneer Renewable Energy Use for Bitcoin Mining in Brazil – Mining Bitcoin News

Published

on

Adecoagro Partners With Tether to Pioneer Renewable Energy Use for Bitcoin Mining in Brazil – Mining Bitcoin News
decoagro is partnering with Tether to explore the use of its renewable energy generation for bitcoin mining in Brazil. This initiative will enable Adecoagro to redirect excess energy, currently sold at spot market prices, into a new revenue stream: bitcoin. Tether and Adecoagro Partner to Establish Green Energy Bitcoin Mining Operation in Brazil Tether, one […]
Continue Reading
Advertisement

Trending