BlackRock’s sBUIDL announced direct DeFi interaction via Euler integration on Avalanche
By: bitcoin ethereum news|2025/05/16 14:30:07
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BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) announced its first direct DeFi protocol integration on Thursday, following an implementation on Euler on Avalanche. Re7 Labs and Securitize launched the protocol interaction, with Merkl providing additional AVAX incentives for participating users. Securitize noted that the incentives enhance the value proposition for sBUIDL holders looking to earn while leveraging DeFi tools. BlackRock acknowledged that sBUIDL is issued through Securitize’s vault system, which allows users to lock BUIDL and mint sBUIDL for DeFi use. The firm revealed that the token will maintain full 1:1 redeemability for BUIDL, which holds short-term U.S. Treasuries and repos. The asset manager also argued that it now connects traditional asset exposure with permissionless protocols without compromising yield or liquidity. The future of finance is composable— And now, so is the BlackRock USD Institutional Digital Liquidity Fund. sBUIDL, minted from the BUIDL fund via Securitize’s sToken vault technology, is now integrated with @eulerfinance on @avax . https://t.co/T8XPl8pQRe pic.twitter.com/4NBOkmwXpF — Securitize (@Securitize) May 15, 2025 Securitize announced on May 15 the launch of sBUIDL, a composable ERC-20 token minted from BUIDL, enabling on-chain functionality. BlackRock also revealed it has entered decentralized finance as its tokenized Fund BUIDL integrates with Euler on the Avalanche blockchain. The asset manager acknowledged that the integration, developed by Re7 Labs, will enable using sBUIDL as collateral on Euler. The company also said that users can earn AVAX rewards when borrowing USDC or AUSD against sBUIDL and the underlying yield generated by the BUIDL fund. Avalanche noted that the $500 M+ Fund seeks to offer a stable value of $1 per token and pays daily accrued dividends directly to investors’ wallets. The firm added that the Fund aims to invest 100% of its assets in cash, U.S. Treasury bills, and repurchase agreements. Avalanche argued that the move would allow investors to earn a yield on potential otherwise-sidelined, non-yield-bearing fiat or stablecoins. The company also said that the fees associated with the share class on Avalanche are notably lower than some of the other blockchains on which the Fund is offered. Ava Labs noted that BUIDL’s expansion to its ecosystem follows other institutional initiatives, including Kinexsys by J.P. Morgan and Citi, and asset managers, such as Wellington, KKR, and Franklin Templeton, that have incorporated Avalanche into their digital asset strategies. The firm also said that its EVM compatibility, sub-second transaction finality, low fees, and customizability make it a compelling choice for institutional deployments. Your crypto news deserves attention – KEY Difference Wire puts you on 250+ top sites Source: https://www.cryptopolitan.com/blackrocks-sbuidl-direct-defi-interaction/
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