In a landmark move that blurs the lines between traditional finance and decentralized finance (DeFi), Securitize has launched the first DeFi integration for BlackRock’s tokenized treasury fund, BUIDL. The integration introduces sBUIDL—an ERC-20 token representing locked BUIDL holdings—onto the Euler lending protocol via the Avalanche blockchain.
New sBUIDL tokens are being created using the sToken Vault technology of Securitize. Once BUIDL tokens are staked in the vault, the sBUIDL allows users to take part in DeFi activities without losing their main exposure to traditional assets.
Fully transparent, the token can be used wherever tokens are accepted, and its original value of 1:1 is always redeemable for the backing of U.S. Treasury bills between U.S. Securities and Exchange Commission (SEC) regulated entities. Investors keep earning the fund’s daily yield during any use of sBUIDL, even if they put it to work as liquidity in DeFi.
The new ERC-20 token sBUIDL is tradable on Euler, a borrow/lend protocol built on the Avalanche network. Users can use their tokens as security for a loan with up to 92.5% LTV, making it possible for all traders to enjoy advanced financial instruments.
Re7 Labs and liquidity incentives by Merkl allow users to both borrow USDC, AUSD, or deUSD through sBUILD and earn AVAX at the same time.
Using sBUIDL eliminates the need to decide between profit and cash, and participants can now do both. Release some of their BUIDL coins without losing the lucrative benefits. Loopring makes it possible to trade on-chain, even while your liquidity is tied to real-world assets.
The result is that treasuries, DAOs, and proficient investors have dynamic DeFi tools for their fixed-income needs.
Putting institutional expertise from BlackRock with the openness and flexible manoeuvring of DeFi, sBUIDL leads the way in combining traditional and decentralized finance. It allows for regulated, adaptable, and stable access to non-crypto assets in a permissionless environment. With sBUIDL, Securitize helps institutions enter the DeFi market safely and comfortably.
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