BlackRock’s tokenized money market fund, BUIDL, has officially entered the decentralized finance (DeFi) space through its integration with the Euler protocol on the Avalanche (AVAX) blockchain. Announced on May 15, 2025, Euler Labs confirmed that sBUIDL, a token backed 1:1 by BlackRock’s BUIDL and issued by Securitize, is now live on the Euler platform. This integration is the first direct DeFi use case for sBUIDL, allowing users to use it as on-chain collateral to borrow USD Coin (USDC) or AUSD while earning AVAX incentives.
Euler, described as a "lending super app," offers institutions flexible lending market tools with customizable parameters such as collateral requirements and liquidation settings. This flexibility supports sophisticated lending products beyond traditional DeFi protocols. Since its launch, Euler has secured over $900 million in deposits, and its modular architecture promotes a liquid ecosystem through ERC4626 standard vaults and Ethereum Vault Connector technology.
The BlackRock BUIDL fund, launched in March 2024, has swiftly grown to nearly $3 billion in assets under management, spanning multiple blockchains including Ethereum, Solana, and Arbitrum. Despite a relatively small holder base of about 73 wallets, the fund’s entry into DeFi signals a significant move to integrate regulated real-world assets into decentralized lending markets. This milestone represents increased institutional adoption of DeFi and a bridge between traditional finance and blockchain ecosystems.
By bringing regulated on-chain exposure to U.S. Treasury yields and other short-term government securities, the BUIDL fund enhances investor confidence and introduces greater stability to the DeFi sector. The collaboration with financial institutions such as Securitize and development by Re7 Labs underlines a pioneering effort to innovate financial instruments on blockchain networks.