BlackRock’s BUIDL Fund Enters DeFi Sector with sBUIDL Token Integration
BlackRock’s tokenized money market fund, BUIDL, has officially made its entry into the decentralized finance sector. In a recent announcement, Euler Labs confirmed the launch of sBUIDL, a token backed 1:1 by BlackRock’s BUIDL and issued by Securitize. This integration marks sBUIDL’s first direct foray into DeFi and is now live on the Euler protocol on the Avalanche (AVAX) network.
Euler Labs, known as a “lending super app,” provides institutions with the tools to create custom lending markets with full control over parameters such as collateral requirements, liquidation settings, and access permissions. The modular architecture of Euler allows builders to combine different components to develop new lending products, offering flexibility that traditional DeFi protocols lack. The platform supports permitted markets, synthetic asset structures, and fixed-term loans, catering to a wide range of lending strategies.
Since its launch, Euler has attracted over $900 million in deposits, showcasing its strength in supporting complex lending strategies. While yield remains a significant draw for users, Euler’s design facilitates seamless interaction between different vaults using the ERC4626 standard and Ethereum Vault Connector, creating a highly liquid network.
Launched in March 2024, BlackRock’s BUIDL fund has quickly grown to $2.8 billion in assets, according to data from rwa.xyz. The fund invests in U.S. Treasury bills, cash, and repos to maintain a stable value of $1 per token while distributing dividends daily. With a presence on multiple blockchains including Ethereum, Solana, and Arbitrum, BUIDL has expanded its reach in the crypto space.
Despite its significant size, BUIDL’s holder base remains relatively small, with just 73 wallets holding the token. However, the integration of sBUIDL into DeFi platforms signifies a broader trend towards bridging traditional finance with blockchain technology. By bringing real-world assets into lending markets and providing a new use case for BlackRock-backed assets, the sBUIDL integration paves the way for greater institutional adoption of DeFi.