BlackRock Makes DeFi Debut with sBUIDL on Avalanche
BlackRock integrates sBUIDL with Euler on Avalanche, using DeFi for tokenized Treasury collateral via Securitize.
- BlackRock’s sBUIDL integrates with DeFi protocol Euler on Avalanche.
- sBUIDL tokens can now serve as on-chain collateral.
- Integration uses Securitize’s sToken framework for security.
BlackRock, the world’s largest asset manager, has taken a groundbreaking step into decentralized finance (DeFi). The firm has connected its $2.8 billion tokenized U.S. Treasury fund, known as sBUIDL, to the Euler lending protocol on the Avalanche blockchain. This marks the first time a major institutional fund has been directly linked with a DeFi protocol in such a capacity.
The move represents a significant leap forward in the fusion of traditional finance and blockchain-based solutions. By enabling sBUIDL tokens to be used as on-chain collateral, BlackRock is not just experimenting — it’s actively participating in the DeFi ecosystem.
sToken Framework Brings Real-World Assets to DeFi
This integration is made possible through Securitize’s sToken framework. This technology helps convert real-world assets, like U.S. Treasuries, into compliant on-chain tokens that can safely interact with decentralized applications.
sBUIDL tokens, which represent shares in BlackRock’s tokenized Treasury fund, can now be used in lending and borrowing activities on the Euler protocol. These DeFi operations occur on the Avalanche blockchain, known for its speed, low fees, and scalability.
What This Means for the Future of Finance
By embracing this technology, BlackRock is signaling a strong vote of confidence in the DeFi space. This move could pave the way for more traditional financial institutions to tokenize their assets and enter DeFi ecosystems. It could also bring greater legitimacy, regulation, and innovation to the industry.
The use of real-world assets like U.S. Treasuries as collateral opens up new financial possibilities — enabling users to access liquidity without selling their holdings, while increasing the utility of tokenized instruments.
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