According to Securitize, holders of BlackRock’s tokenized money market funds can now explore DeFi opportunities while earning interest on US Treasuries.
Securitize and Elixir announced on November 19 that they were rolling out a liquid staking token (LST) for tokenized securities, integrating BlackRock’s BUIDL on-chain money fund.
The USD RWA institutional program, designed by Elixir, “unlocks enhanced yield opportunities and composability for over $1 billion in Securitize-issued real-world assets (RWA) in decentralized finance (DeFi),” according to the Securitize press release.
DeFi vaults, based on the ERC-4626 standard of the Ethereum network, “enables Blackrock BUIDL and other RWA holders to seamlessly access DeFi using deUSD as their primary currency,» Elixir said in an article from November 19 on the X platform.
The USD Institutional Digital Liquidity Fund (BUIDL), created by BlackRock and tokenized by Securitize, invests primarily in short-term U.S. Treasury bills (T-Bills) and other comparable low-risk, interest-bearing securities.
BUIDL depositors receive sBUIDL LST through DeFi vaults, according to Elixir.
“BUIDL holders can now create sBUIDL and use it to access DeFi via deUSD, while still earning the underlying yield. $1 billion in RWA liquidity just released,” RWA.xyz, an RWA database, said in an article
On November 13, BlackRock launched BUIDL on several blockchain networks, including Aptos, Arbitrum, Avalanche, Optimism and Polygon.
“With these new channels, we will start to see more investors looking to leverage the underlying technology to increase the efficiency of everything that has previously been difficult to do.” Carlos Domingo, CEO of Securitize, said in a statement.
Tokenized RWAs, which generate low-risk returns through Treasury bills and other money market instruments, are seeing an increase in demand.
Check: Aave Labs pairs stablecoin GHO with BlackRock’s BUIDL
RWA.xyz reports that as of November 19, the US Treasury’s token debt had reached a total blocked value of approximately $2.4 billion.
The Franklin OnChain US Government Money Fund (FOBXX), with assets under management (AUM) of approximately $540 million and $450 million, ranks second behind BUIDL, the largest AUM tokenized treasury fund.
Launching on multiple channels allows “BUIDL will be used in leading blockchain-based financial products and infrastructure across ecosystems,» » said BlackRock.
In an interview in August, Colin Butler, global head of institutional capital at Polygon, explained that tokenized RWAs – including treasuries and fine art – represent a $30 trillion global market opportunity.
“Tokenization can potentially improve the liquidity of Treasury trading by reducing operational and settlement frictions.” according to the United States Department of Treasury report for the fourth quarter of 2024.
