The sBUIDL token, representing BlackRock’s tokenized fund, can now be used as collateral on the Euler Finance platform. This integration marks the first step of the DeFi project into the company’s product line, with the total assets under management (AUM) of the BUIDL fund exceeding $3 billion.
This is reported by Business • Media
Securitize, BlackRock’s partner in this initiative, noted that this move will unlock institutional liquidity for DeFi.
What is BUIDL from BlackRock?
BUIDL is a tokenized treasury bond fund implemented in collaboration with the RWA platform Securitize. The platform has issued the ERC-20 standard token sBUIDL, allowing fund shareholders to unlock liquidity for access to decentralized finance (DeFi). In November 2024, BlackRock announced the expansion of BUIDL to multiple blockchains, including Aptos, Arbitrum, OP Mainnet, and Polygon.
Integration with Euler
According to a press release from Securitize, sBUIDL can now be used as collateral in the Euler protocol. Users have the opportunity to earn passive income in the form of AVAX tokens when borrowing USDC or AUSD against sBUIDL collateral, while still maintaining the base income from the fund. This is the first integration of a DeFi product for BUIDL, but the team does not rule out the possibility of expanding to other projects within the Avalanche ecosystem.
The sBUIDL tokens are tied to the shares of the tokenized fund and can be redeemed at any moment at a 1-to-1 rate, issued based on the ERC-20 standard.
“By combining the security and profitability of BUIDL from BlackRock with the open nature of DeFi, sBUIDL connects 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.”
The Euler protocol, which was relaunched in September 2024 after a massive hack of $197 million, continues to evolve, offering new opportunities for users in the world of decentralized finance.