Securitize and Elixir Introduce DeFi Vaults for BlackRock’s BUIDL
Securitize and Elixir have launched a new financial innovation for holders of BlackRock’s tokenized money fund, BUIDL. This development allows investors to engage in decentralized finance (DeFi) activities while continuing to earn interest from U.S. Treasury bills, according to Securitize.
Launch of Liquid Staking Tokens for Tokenized Securities
The collaboration between Securitize and Elixir has led to the creation of a liquid staking token (LST) specifically for tokenized securities, including BlackRock’s BUIDL. This new token, known as deUSD, is part of the deUSD RWA Institutional Program designed by Elixir, a blockchain network for crypto exchanges. The program aims to unlock yield opportunities and enhance composability for over $1 billion in Real World Assets (RWAs) issued by Securitize within the DeFi space.
Accessing DeFi through Ethereum-Based Vaults
The newly launched DeFi vaults are built on the Ethereum blockchain, utilizing the ERC-4626 standard. This standard allows BlackRock BUIDL holders and other RWA investors to access DeFi effortlessly, using deUSD as the main currency. Tokenization of BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) by Securitize enables these vaults to issue depositors LSTs called sBUIDL.
Enhancing Liquidity and Yield Opportunities
BUIDL holders can now mint sBUIDL tokens to access DeFi via deUSD, all while still earning the underlying yield from their investments. This move has unlocked $1 billion in RWA liquidity, according to RWA.xyz, a database specializing in RWAs.
Expanding BlackRock’s BUIDL Across Multiple Blockchains
On November 13, BlackRock expanded BUIDL’s reach by launching it on several additional blockchain networks, including Aptos, Arbitrum, Avalanche, Optimism, and Polygon. This expansion allows BUIDL to be integrated within major blockchain-based financial products and infrastructure across various ecosystems.
The Growing Demand for Tokenized RWAs
There is a rising demand for tokenized RWAs that provide low-risk yields from T-bills and other money market instruments. As of November 19, tokenized U.S. Treasury debt holds approximately $2.4 billion in total value locked, according to RWA.xyz.
BUIDL’s Position in the Tokenized Treasury Fund Market
BUIDL is currently the largest tokenized treasury fund in terms of assets under management (AUM), surpassing competitors like the Franklin OnChain US Government Money Fund. The increased adoption and integration of BUIDL across multiple chains allow investors to leverage blockchain technology to enhance efficiencies in financial transactions.
Tokenization’s Role in Improving Liquidity
The tokenization of RWAs, from T-bills to artworks, represents a significant market opportunity valued at $30 trillion globally. Tokenization can potentially improve liquidity in treasury trading by minimizing operational and settlement frictions, as highlighted by the U.S. Department of the Treasury in a recent report.
The introduction of DeFi vaults for BlackRock’s BUIDL marks a substantial step forward in bridging traditional finance with the transformative capabilities of blockchain technology. As more assets become tokenized, the financial landscape continues to evolve, offering new avenues for growth and efficiency.
