BlackRock’s BUIDL Fund Integrated into Euler for On-Chain Collateral Use
By: btc-pulse|2025/05/16 19:15:06
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BlackRock’s BUIDL Fund Enters DeFi via Euler Protocol BlackRock’s tokenized money market fund, BUIDL, has officially entered decentralized finance. On May 15, Euler Labs announced on X that sBUIDL, a Securitize token collateralized 1:1 by BUIDL, went live on the Euler lending protocol. This is sBUIDL’s first inclusion into DeFi, via Re7 Labs, and deployed on the Avalanche blockchain. Using sBUIDL as On-Chain Collateral With the integration, DeFi users can now use sBUIDL as collateral to borrow USD Coin (USDC) or AUSD. Borrowers also qualify for rewards in AVAX. Euler has also been referred to as a “lending super app” that enables institutions to build custom lending markets with complete control over variables such as collateral requirements, liquidation conditions, and user permissions. Euler’s modular and flexible architecture is different from rigid DeFi models. Its architecture supports innovations such as permitted markets, synthetic tokens, and term lending products. Institutional DeFi Adoption Surges Since its launch, Euler has accounted for over $900 million in deposits. It supports sophisticated strategies by allowing seamless interaction between vaults through the ERC4626 standard and Ethereum Vault Connector—supporting liquidity across its ecosystem. BlackRock’s BUIDL fund, launched in March 2024, has rapidly amassed $2.8 billion in assets. It is investing in U.S. Treasury bills, cash, and repos to support a stable $1 token price and pay dividends on a daily basis. The fund currently operates on Ethereum, Solana, and Arbitrum blockchains. Merging Traditional Finance and DeFi Although the fund’s size, BUIDL remains in just 73 wallets, a sign of its institutional origin. However, its integration by Euler is a vital milestone toward reconciling traditional finance and decentralized platforms. The move not only establishes new use cases for BlackRock-backed assets but also strengthens the link between real-world assets and decentralized lending markets.
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