Several events are in the pipeline for the crypto industry this week, like Frax Finance revamping its FRAX stablecoin into a new BUIDL-backed asset, Sui unlocking 64 million governance tokens, and six Israeli investment firms launching Bitcoin mutual funds.
Web3 SDK platform Empyreal will also launch a no-code AI Agent Launchpad. Furthermore, Pendle will perform an airdrop, Movement’s Mainnet Launch is scheduled, and GammaSwap’s yield tokens are having an audit. Overall, it’s a jam-packed week for the crypto community to kickstart 2025.
Frax Finance is voting to use BlackRock’s tokenized fund BUIDL as the backing asset for its refreshed frxUSD stablecoin, which will end tomorrow.
The DeFi “Central Bank of Crypto” has been launching stablecoin solutions for years, and now it’s planning to convert its existing FRAX stablecoin into frxUSD. At the time of writing, the voters unanimously favor adopting the proposal.
“Securitize has submitted a proposal to integrate BlackRock’s BUIDL token as a reserve backing for Frax’s soon-to-be-relaunched frxUSD stablecoin. By bridging institutional-grade assets with decentralized finance, we’re driving the next wave of innovation in stablecoins,” Securitize claimed via social media.
In October, BlackRock publicly claimed that it wants exchanges to use its BUIDL token as collateral for derivative assets. Although Frax Finance’s new product is not one of these, it’s not the only BUIDL-backed stablecoin to launch recently. Earlier this month, Ethena Labs used BUIDL to back its new USDtb asset.
BlackRock has directed BUIDL to make several major expansions in the crypto space recently. Frax’s vote will close in one day, and the community has no substantial opposition to the proposal. It’s extremely likely that this plan will go through.
The popular layer-1 blockchain Sui network is preparing for a major token unlock this week. On January 1, the protocol will unlock 64 million SUI tokens, next to a current circulating supply of 2.92 billion. Even after this major release, the vast majority of tokens will remain out of circulation.
SUI Unlock. Source: Tokenomist
SUI is a governance token, and the primary beneficiaries of this unlock will be early investors and contributors. Specifically, unlocked tokens will go to Series A and B participants, the community reserve, and the Mysten Labs treasury.
Six Israeli investment firms are preparing to launch Bitcoin-based mutual funds this week. Bitcoin mutual funds were the hottest several years ago when the ETFs didn’t have regulatory approval.
In 2024, however, new crypto mutual funds are mostly for assets that don’t have a viable ETF. Although Israeli businesses are fighting for them, there’s been little success.
“The investment houses have been pleading for more than a year for ETFs to be approved, and started sending prospectuses for bitcoin funds in the middle of the year. The regulator marches to its own tune. It has to