The sBUIDL token of BlackRock’s tokenized fund is now available for use as collateral on the Euler Finance platform. This marks the first step in integrating a DeFi product into the company’s offerings.
This is reported by Finway
The BUIDL fund has a total assets under management (AUM) of over $3 billion. Securitize reported that this innovation will unlock institutional liquidity for DeFi.
Tokenization of the BUIDL Fund
The BlackRock BUIDL tokenized fund has been integrated with the Euler Finance protocol. The Securitize platform also announced the potential involvement of other projects within the Avalanche ecosystem.
BUIDL is a tokenized treasury bond fund, implemented in collaboration with the RWA platform Securitize. The fund has issued the ERC-20 standard token sBUIDL, allowing shareholders to unlock liquidity for access to DeFi.
In November 2024, BlackRock announced the expansion of BUIDL to several blockchains, including Aptos, Arbitrum, OP Mainnet, and Polygon.
Features of Integration with Euler
According to a press release from Securitize, sBUIDL can now be used as collateral in the Euler protocol. Users earn passive rewards in the form of AVAX tokens when borrowing USDC or AUSD against sBUIDL, while retaining the underlying income from the fund.
Although this is the first integration of a DeFi product for BUIDL, team representatives hinted at the possibility of expanding to other projects within the Avalanche ecosystem. sBUIDL tokens, tied to shares of the tokenized fund, can be redeemed at any time at a 1-to-1 rate, and they are also issued based on the ERC-20 standard.
“By combining the security and profitability of BUIDL from BlackRock with the open nature of DeFi, sBUIDL bridges traditional finance with decentralized liquidity. This is not just a token – it is a gateway for institutional capital that can flow into on-chain markets with transparency and utility,” stated Securitize.
The Euler protocol, which focuses on lending, was relaunched in September 2024 after a major hack that resulted in a loss of $197 million.