BlackRock’s sBUIDL Enables Direct DeFi Access Through Euler Integration on Avalanche

By: coinfea|2025/05/16 16:00:16
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BlackRock’s USD Institutional Digital Liquidity Fund (sBUIDL) has completed its first direct integration with a decentralized finance protocol through Euler on the Avalanche blockchain. This marks a significant step in combining tokenized real-world assets with permissionless financial systems while preserving liquidity and returns.Re7 Labs and Securitize facilitated the integration, with support from Merkl, which is offering AVAX incentives for users who participate in the protocol. Securitize emphasized that the added rewards aim to increase the utility of sBUIDL for investors who want to use DeFi tools without compromising asset security or performance.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, 2025sBUIDL Brings On-Chain Utility to BlackRock’s Tokenized FundBlackRock confirmed that sBUIDL is issued through Securitize’s vault infrastructure. This system allows holders to lock BUIDL tokens and mint sBUIDL, which can be used across DeFi protocols. The firm stated that sBUIDL remains fully redeemable 1:1 with BUIDL. The underlying fund is backed by short-term U.S. Treasury bills, cash, and repurchase agreements, maintaining a stable value while providing a steady yield.Securitize launched sBUIDL on May 15 as a composable ERC-20 token. The integration with Euler means users can now use sBUIDL as collateral to borrow assets like USDC and AUSD while earning the yield generated by the BUIDL fund. Merkl’s AVAX rewards further enhance the user incentives on the Avalanche network.Avalanche Offers Efficiency and Lower Fees for Institutional OnboardingAvalanche highlighted that the $500 million-plus BUIDL Fund targets a fixed value of $1 per token and pays daily accrued dividends directly to investors’ wallets. The network added that using sBUIDL allows investors to generate yield from assets that would typically remain idle, such as stablecoins or fiat.According to Avalanche, transaction fees for the Fund on its blockchain are lower compared to other platforms. This cost efficiency, combined with sub-second transaction finality and EVM compatibility, makes Avalanche attractive for institutions entering digital asset markets.Institutional Adoption Continues to Grow on AvalancheAccording to Ava Labs, the deployment of BUIDL brought more institutions on board and was one of several reasons for notable growth on the Avalanche network. Experiments like Kinexsys, created by J.P. Morgan and Citi, are part of what the network is attracting. Wellington, KKR, and Franklin Templeton are among the asset firms that have joined Avalanche, benefitting from its advantages in digital asset management.The post BlackRock’s sBUIDL Enables Direct DeFi Access Through Euler Integration on Avalanche first appeared on Coinfea.

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