Securitize Launches “sBUIDL” on Euler to Unlock On-Chain Liquidity: Is the RWAFi Spring Here?

05/16/2025

Securitize Launches Composable sBUIDL Token, Marking BlackRock’s Largest Tokenized US Treasury Fund’s Entry into DeFi

Securitize has launched the composable sBUIDL token, enabling BlackRock’s largest tokenized US Treasury Fund, BUIDL, to enter the DeFi world. Through the lending protocol Euler on Avalanche, this represents the first direct integration, symbolizing the genuine entry of traditional financial assets into the on-chain ecosystem, with the potential to inject unprecedented liquidity and utility into tokenized assets.

From Static Holding to Dynamic Application: The Key Transition of BUIDL

BUIDL, issued by BlackRock, is an institutional digital dollar liquidity fund that invests in short-term US Treasury bonds and repurchase agreements, with the fund size nearing $3 billion. Although BUIDL is itself an ERC-20 token, it cannot directly participate in open DeFi protocols due to regulatory considerations, leading to a significant amount of assets passively sitting on-chain.

(BlackRock Moves Toward Solana! BUIDL’s Market Cap Has Reached $1.7 Billion, Solidifying Its Position as ‘Tokenized Treasury’)

The sBUIDL launched by Securitize can be seen as the ‘DeFi packaged version’ of BUIDL, minted through its proprietary sToken Vault technology. After investors lock BUIDL in the Securitize vault, they can receive 1:1 redeemable sBUIDL, transforming previously restricted assets into freely operable DeFi components.

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. pic.twitter.com/4NBOkmwXpF — Securitize (@Securitize) May 15, 2025

sBUIDL Lands on Euler Lending Market: Unlocking RWA Liquidity

The first practical application of sBUIDL has chosen to partner with the relaunched Euler Finance and is deployed on the Avalanche blockchain.

1/ A historic first in DeFi. BlackRock-backed sBUIDL, issued by @Securitize, is now live on Euler. It’s sBUIDL’s first ever direct DeFi integration. Curated by @Re7Labs on @Avax. pic.twitter.com/B7tTuGzqHL — Euler Labs (@eulerfinance) May 15, 2025

Euler, as a decentralized EVM lending protocol, suffered a loss of $197 million due to a hacker attack in 2023. However, with the v2 version relaunched in 2024, it has attracted market attention again, with the current TVL exceeding $900 million. This integration allows sBUIDL to be accepted as collateral on Euler, with a maximum loan-to-value (LTV) ratio of 92.5%. This not only unlocks RWA liquidity but also introduces it into the mainstream DeFi lending cycle.

Institutional Capital + Public Chain Liquidity = Attractiveness

Through sBUIDL, BUIDL holders can:

Borrow stablecoins (such as USDC, USDT, and AUSD) against their collateral
Withdraw liquidity without selling their assets
Participate in other DeFi protocols within the Avalanche ecosystem
Earn AVAX rewards, enhancing asset utilization

This structure transforms the traditional ‘buy and hold’ asset strategy into a dynamic investment method that is ‘composable, transferable, and strategically operable,’ making it highly attractive for DAO treasuries and asset management protocols.

From Closed to Open: sBUIDL as a Milestone for RWA Standards

The sToken Vault technology developed by Securitize successfully strikes a balance between ‘compliance’ and ‘composability,’ allowing RWAs to participate in on-chain finance without violating regulations. The issuance and integration of sBUIDL also provide a replicable reference template for more tokenized assets to venture into DeFi, attracting interest from entities ranging from VanEck to Robinhood.

(Securities Tokenization Reaches $22.6 Billion! SEC ### Atkins: BlackRock and Franklin Have Already Positioned Themselves, Regulatory Frameworks Need to Keep Pace)

BV DAO founder @cmdefi also noted that sBUIDL has successfully removed restrictions on tokenized assets, predicting that other mainstream protocols like Aave will soon follow suit.

2025: The Year of RWAFi? The Convergence of Institutional Capital and the DeFi World

This integration is a historic first case of an institutional-grade tokenized fund directly entering DeFi, holding significant meaning. It not only opens the door for RWAs to be truly applied on-chain but also provides a model for institutional capital to explore DeFi applications, achieving a qualitative change from ‘on-chain’ to ‘liquid’: the birth and application of sBUIDL is an important milestone for RWAFi entering the open finance realm.

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It represents not just a new asset class but also the beginning of a new era: ‘Traditional finance and the on-chain world are no longer parallel universes but an integrated entity that can interact, collaborate, and co-create liquidity.’

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