In a landmark development for decentralized finance (DeFi) and institutional adoption, Securitize has launched sBUIDL, an ERC-20 token derived from BlackRock’s tokenized treasury fund (BUIDL), marking its first integration with a DeFi protocol.
This move introduces a groundbreaking layer of utility and composability for real-world assets (RWAs), as sBUIDL is now listed on the Euler lending protocol via the Avalanche blockchain, curated by Re7 Labs.
At its core, sBUIDL leverages Securitize’s sToken Vault technology, allowing BUIDL investors to lock their tokenized assets and mint sBUIDL, which can then be used across DeFi ecosystems. Unlike traditional tokenized funds, sBUIDL is fully redeemable 1:1 for BUIDL, retaining all yield benefits while enabling DeFi-native applications. This means investors can access liquidity and utility in a decentralized manner—without sacrificing exposure to U.S. Treasury bills and repos held by the BUIDL fund.
The Euler integration now positions sBUIDL as an eligible collateral asset in its borrow/lend market on Avalanche, with a loan-to-value (LTV) ratio of up to 92.5%. Users can borrow stablecoins such as USDC, USDT, AUSD, and deUSD, while still accruing yield from the underlying BUIDL holdings. Additionally, DeFi participants can earn AVAX liquidity mining rewards via Merkl by utilizing sBUIDL as collateral.
This fusion of traditional finance’s security and DeFi’s composability marks a pivotal step toward institutional DeFi adoption. It empowers both individual investors and large treasuries to turn passive, yield-bearing assets into actively deployed collateral, unlocking liquidity and maximizing capital efficiency.
By launching sBUIDL, Securitize and BlackRock have effectively bridged the gap between off-chain financial products and on-chain utility—ushering in a new era where tokenized treasuries become functional tools in DeFi strategies. This move not only sets a precedent for tokenized asset integration but also solidifies Avalanche’s role as a growing hub for institutional-grade DeFi activity.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/blackrocks-buildl-fund-goes-defi-wall-street-meets-crypto/