- Frax Share token FXS price increased by around 30% today after BlackRock BUIDL’s support to Frax USD stablecoin.
- Securitize proposed a Frax improvement proposal to back Frax USD with BUIDL as a collateral.
Even though major cryptocurrencies have not recorded any significant price rises, some cryptocurrencies are performing well today. Frax Share (FXS) price witnessed a huge price hike and went to as high as $3.52 with a 680% increase in its trading volume. After a complete week of downward price movement, FXS price finally picked with the news of BlackRock’s support to Frax USD stablecoin.
Frax Shares token FXS is trading at around $3.22 at the press time with a 26% surge in the last 24 hours. However, It witnessed a substantial price surge of over 45% earlier today and went to the highs of $3.52 from the lows of $2.5. Its market cap also witnessed around 30% rise and is hovering around $275.5 million, while daily trading volume is $154.7 million with a 685% surge.
The price surge of FXS put a break on its week-long downward price movement. When the news of Securitize proposing to back Frax USD stablecoin with BlackRock’s BUIDL circulated, it immediately had an impact on FXS price.
FXS price surges as Securitize Proposes BlackRock’s BUIDL as a Collateral for Frax USD
A brokerage firm Securitize proposed BlackRock’s BUIDL fund to act as a collateral for Frax USD stablecoin. BUIDL or BlackRock US Dollar Institutional Digital Liquidity Fund will back Frax USD, acting as a collateral reserve asset. This way, it offers deeper liquidity, transfer options, yield opportunities, and reduced counter-party risks.
Having one of the largest asset management firm BlackRock’s support, Frax USD stablecoin would benefit in several ways. Even though Frax Finance is considering the proposal, it is still subject to community vote and needs approval from Frax DAO.
Frax Finance comes up with several major developments on infrastructure level. It is developing a technological stack to deploy AI agents on blockchain, as a part of its 2025 vision roadmap. It even plans to become the decentralized central back of crypto.
The collateral backing proposal from a top organization such as BlackRock came at the right time as Frax Finance plans to rebrand its frxUSD stablecoin. If the Securitize proposal gets approval from the Frax DAO and contributes to the success of Frax USD stablecoin, we can see more price surges of FXS token in the new year.
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