BlackRock is ushering in a new era of DeFi by integrating its BUIDL tokenized fund with Euler Finance on the Avalanche Network, enabling users to use sBUIDL as collateral for loans and earn rewards in AVAX. This partnership marks a key advancement in the convergence of traditional and decentralized finance.
By integrating its BUIDL tokenized fund with the Euler Finance protocol, BlackRock is enabling the sBUIDL token, an ERC-20 tokenized version of the BUIDL fund, to be used as collateral for loans within the DeFi ecosystem, in addition to granting users rewards in AVAX, the native token of the Avalanche blockchain.
With this integration, the investment manager, the largest in the world, is expanding the usefulness of the traditional fund, which has accumulated almost $3.000 billion in value, while building a new bridge for the interconnection of regulated financial assets with the innovations of the blockchain ecosystem.
BUY AVAX WITH BIT2MEIn a context where the tokenization of real assets is gaining ground, the alliance between BlackRock, Euler Finance, Securitize and Avalanche stands out as a milestone that promotes convergence between traditional and decentralized finance, opening up new possibilities for DeFi investors and users.
BUIDL and Euler Finance: A partnership transforming traditional asset use in DeFi
BUIDL's integration with Euler Finance represents an unprecedented advance in the institutional adoption of DeFi. BUIDL is a tokenized fund managed by BlackRock that invests primarily in U.S. Treasury bonds and repurchase agreements, currently valued at nearly $3.000 billion.
Now, the innovation of this fund lies in its tokenized version, sBUIDL, can be used as collateral for loans within the Euler Finance protocol, a decentralized lending and borrowing platform that has been integrated into the Avalanche Network. This means users can deposit sBUIDL in Euler and borrow in stablecoins like USDC or AUSD, accessing available liquidity without having to liquidate their traditional assets.
Furthermore, those who use sBUIDL as collateral not only earn the returns generated by the underlying fund, but also receive additional incentives in AVAX, Avalanche's native token. This integration therefore offers investors a double advantage, making sBUIDL a highly composable ERC-20 asset that retains the ability to be redeemed for the original fund without losing on-chain functionality.
TRADE SAFELY WITH STABLECOINS HERELa collaboration, supported by Securitize’s “sToken” framework, opens the door to greater integration of real-world assets (RWAs) into the DeFi ecosystem, strengthening the trust and utility of these financial instruments in decentralized environments.
“This marks the first direct DeFi integration for the BUIDL fund, unlocking a new era of utility, liquidity, and composability for real-world tokenized assets,” Securitize stressed.
Avalanche: The ideal infrastructure for the convergence of TradFi and DeFi
The Avalanche network stands out for its high transaction speeds, compatibility with the Ethereum Virtual Machine (EVM), and a focus on financial institutions. These features make it an ideal infrastructure for hosting tokenized assets like sBUIDL and facilitating their use in DeFi protocols like Euler Finance.
The Avalanche ecosystem offers low rates and fast confirmations, which improves user experience and operational efficiency. In addition, Avalanche has proven to be a robust environment for the tokenization of real assets, supporting innovative financial solutions that seek to combine the transparency and accessibility of blockchain with the security and regulation of traditional markets. BlackRock's integration with Euler Finance on Avalanche not only expands the adoption of sBUIDL, but also drives the Demand and utility of the AVAX token, generating a virtuous circle between blockchain infrastructure and institutional financial products.
YOUR SECURE DOOR TO CRYPTO IS HEREThis development is part of a broader strategy to maximize the utility of tokenized products, enabling traditional assets to operate flexibly in decentralized environments without sacrificing the regulatory and security standards that support them. Avalanche is thus positioned as a fundamental technological bridge that facilitates the convergence between traditional and decentralized finance.
Towards the future of finance and the adoption of tokenized assets
The integration of sBUIDL into Euler Finance represents a significant step towards normalization and mass adoption of tokenized assets in the financial world. By allowing a large-scale institutional fund like BUIDL to be used as collateral in DeFi loans, a new range of possibilities opens up for investors looking to combine the security and regulation of traditional markets with the innovation and liquidity offered by DeFi.
This development also underscores the growing trend of incorporating real-world assets (RWA) into decentralized protocols, which could attract more institutions and traditional users to the blockchain ecosystem. The ability to earn returns from both the underlying fund and incentives in native tokens like AVAX creates added value that could further drive the adoption and development of new hybrid financial products.
Likewise, the collaboration between BlackRock, Securitize, Euler Finance and Avalanche shows how tokenization and blockchain technology are transforming the way financial assets are managed and usedThe possibility of instant settlements, transfers peer-to-peer and on-chain asset composition offers unprecedented efficiency and transparency, which can revolutionize the global financial industry.
Trade quickly and easily with Avax on Bit2Me.In conclusion, the integration of BUIDL with Euler Finance on Avalanche accelerates the convergence between traditional and decentralized finance, while expanding the functionality of tokenized funds and driving the adoption of tokenized assets in a robust and efficient blockchain ecosystem. In essence, this development opens a promising path for coexistence and collaboration between the traditional and decentralized financial worlds, pointing toward a future where technological innovation and institutional regulation complement each other to offer new opportunities to investors and users.
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