Securitize has partnered with Elixir to provide a ground-breaking solution that allows BlackRock’s tokenized money fund, BUIDL, to participate in decentralized finance (DeFi) while keeping its income on US Treasury notes. This new effort, which debuted on November 19, enables institutional investors to increase the liquidity of their real-world assets (RWAs) by deploying them to DeFi, thereby increasing yield opportunities while preserving the underlying returns.
The collaboration presents the deUSD RWA Institutional Program, which aims to deliver over $1 billion in tokenized RWAs with a frictionless introduction into the DeFi market. The DeFi vaults, which use Ethereum’s ERC-4626 standard, will allow holders of BlackRock’s BUIDL and other RWAs to convert their holdings into sBUIDL tokens, which can then be used within DeFi markets while receiving the original interest from US Treasury bills.
This move is a big step in bridging the gap between traditional finance and DeFi, allowing institutional investors to keep their low-risk, high-yield assets while gaining exposure to the decentralized ecosystem. The integration comes as demand for tokenized US Treasury debt surges, with billions of dollars in total value locked (TVL).
With this program, Securitize and Elixir hope to increase liquidity in DeFi markets and attract institutional clients to the industry, especially as competition heats up. Other platforms, such as BNB Chain, target institutional users. As BlackRock expands BUIDL’s capabilities across several blockchains, this collaboration paves the way for increased institutional participation in the rapidly changing DeFi ecosystem.
