BlackRock Enters Decentralized Finance as Its Tokenized BUIDL Fund Integrates with Euler on Avalanche

BlackRock has entered decentralized finance as its tokenized fund BUIDL integrates with Euler on the Avalanche blockchain. Securitize has launched sBUIDL

BlackRock has joined decentralized financial protocols as its tokenized fund BUIDL integrates with Euler on the Avalanche blockchain.

Completing a year-long journey from announcement to launch, sBUIDL—a composable ERC-20 token minted from BUIDL and issued by Securitize—has arrived on Euler’s lending platform. This marks BlackRock’s first direct integration with a DeFi protocol.

sBUIDL is issued using Securitize’s vault system, allowing users to lock BUIDL and mint sBUIDL for DeFi use. The token is fully 1:1 redeemable for BUIDL, which holds short-term U.S. Treasuries and is exposed to repo markets.

sBUIDL earns native AVAX liquidity rewards as the asset is used for borrowing and lending on Euler. The integration also allows for a structured entry point for broader capital market participation.

sBUIDL: A Structured Integration for Treasury Fund Tokens

sBUIDL, a tokenized portion of BlackRock’s flagship treasury fund, is now live on Euler’s lending protocol. It marks a significant moment in the convergence of traditional and decentralized finance.

sBUIDL is a composable ERC-20 token that can be used in decentralized applications. It’s fully backed by BUIDL, a tokenized portion of BlackRock’s treasury fund investing in short-term U.S. government bonds.

sBUIDL is issued and managed using Securitize’s structured product framework. It’s designed to provide a seamless way for institutional capital to engage with decentralized financial protocols.

sBUIDL will be listed on Euler’s lending protocol, where it can be used as collateral to borrow other assets. This will allow sBUIDL to earn liquidity mining rewards in AVAX.

sBUIDL is also supported by Merkl, a blockchain startup focused on structured product issuance. Merkl will be providing additional AVAX incentives for users participating in sBUIDL.

sBUIDL is a functional bridge between BlackRock’s tokenized treasury exposure and decentralized financial markets. It’s designed to improve capital efficiency for BUIDL holders by enabling real-time liquidity and allowing for active portfolio management.

Euler’s Modular Architecture Attracts $387 Million in Deposits

Euler is a modular, developer-first protocol that provides lending and borrowing services on Avalanche. It’s known for its rapid innovation and responsiveness to user needs.

Earlier this year, Euler completed the migration of its protocol from v1 to v2, having previously been exploited for $70 million in March 2023.

Despite the exploit, Euler quickly recovered and returned all exploited funds to users. Its redesigned architecture has attracted over $387 million in deposits since the relaunch.

This influx of capital highlights the role of trust and efficient risk management in institutional DeFi participation.

Avalanche Serves as a Key Chain for Institutional DeFi

Avalanche is the blockchain that powers Euler’s lending protocol and provides the framework for sBUIDL’s integration into decentralized markets.

Avalanche is known for its low transaction fees, high throughput, and smart contract capabilities, making it suitable for scalable and permissionless financial applications.

Earlier this year, Avalanche announced a partnership with Boston Consulting Group to explore Web3 use cases with leading institutions.

This partnership, along with the launch of sBUIDL on Euler, underscores Avalanche’s role in facilitating compliant and scalable on-chain asset management.