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.

“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.

A bitcoin mining operation has been allowed to keep its development permit after concerns were raised about noise pollution.

The Beaver County project by Calgary-based MAGA Energy proposes two sea can containers of computers powered by four generators drawing from a natural gas well on site. The computers would operate 24 hours a day, seven days a week, running data algorithms to create cryptocurrency.

The facility would be located on a rural property 55 kilometres southeast of Edmonton.

The Beaver County Development Authority approved a development permit for the project. Notifications from MAGA were sent to property owners within 1,500 metres and nine adjacent owners by the development authority but no concerns were raised as a result.

However, a property owner beyond the notification area appealed the approval. Noise from an existing similar development 600 metres from the owner was creating a nuisance and they were concerned the proposed development would cause similar problems.

The Alberta Utilities Commission sets out permissible sound levels depending on population density and proximity to transportation, ranging from 40 to 60 decibels. The appellant argued the permissible sound level of 40 dB is excessive in a rural area and a lower limit should be used.

A Dec. 20 decision from the Alberta Land and Property Rights Tribunal upheld the permit approval.

“The predicted noise level of the generators is substantially below the threshold set by the AUC. No evidence was presented to suggest otherwise,” it reads.

“The generators incorporate some noise reduction features in their design, and additional mitigation features can be added if required.”

According to submissions from MAGA, the theoretical noise levels for eight residents ranged from around 19 to 25 dB.

The permit approval included a number of conditions, including around monitoring and potential sound mitigation. The project is also subject to Beaver County noise control bylaw.

During the appeal, the development authority reconsidered its position and was concerned about potential inaccuracies in noise calculations. It submitted revised conditions for consideration, including a new condition for the permit to be temporary for 18 months.

The well is projected to support natural gas to the generators for two to three years.

The tribunal added one condition: a five-year time limit.

The tribunal found that the five-year time limit would allow MAGA to “exhaust the resource in their estimated time frame,” and would enable the development authority to look at the operation’s impact.

The tribunal noted MAGA is still responsible for all other applicable permits and approvals required for the project from the appropriate authorities.