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Frax Finance Opens USDte Minting With Frax USD for Pre-IPO Loans

Frax Finance has enabled the minting of USDte using frxUSD as a collateralized vehicle specifically designed to fund pre-IPO private company loans.

So what

Integrating pre-IPO private equity assets into decentralized stablecoin collateral frameworks introduces significant valuation latency and liquidity mismatch risks. If secondary markets for private shares freeze, the redemption peg of the associated stablecoin could face severe structural stress, establishing a dangerous precedent for mixing illiquid venture equity with liquid on-chain payment rails.

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