BlackRock’s Tokenized Fund BUIDL Launches on DeFi Protocol Euler, Advancing On-Chain Applications for RWA

Asset Tokenization Platform Securitize Announces Integration of Tokenized Fund BUIDL

Asset tokenization platform Securitize announced on Thursday that the tokenized fund BUIDL, issued by asset management company BlackRock, has been launched on the lending protocol Euler on the Avalanche blockchain through Securitize’s proprietary vault technology. This marks the first direct integration of this nearly $3 billion on-chain government bond fund with decentralized finance (DeFi) protocols.

According to the official article, this integration is built on Securitize’s sToken Vault technology, enabling tokenized products like BUIDL to transform into a modular ERC-20 token that grants native DeFi functionalities without compromising the integrity of the underlying assets.

BUIDL investors can lock their tokenized securities in Securitize’s vault and mint sBUIDL for various DeFi operations. sBUIDL can be redeemed for BUIDL funds at a 1:1 ratio at any time, including accumulated earnings.

According to a previous report by Zombit, the BUIDL fund issued by BlackRock invests 100% of its total assets in cash, U.S. Treasury bonds, and repurchase agreements, allowing investors to earn returns while holding tokens on the blockchain. Data from tokenized real asset analytics company RWA.xyz shows that BUIDL is currently the highest market cap tokenized public bond product, reaching $2.87 billion, followed by BENJI issued by Franklin Templeton.

Integration with DeFi Protocols

According to the announcement, the integration with the lending protocol Euler was developed by Re7 Labs, enabling sBUIDL to be used as collateral on the Euler platform on the Avalanche chain. Users can borrow USDC or AUSD using sBUIDL as collateral while also earning AVAX rewards and related earnings generated by the BUIDL fund.

Euler previously faced a liquidity check failure in 2023 due to a vulnerability in the “donateToReserves” function, which allowed attackers to manipulate collateral and debt tokens, resulting in a flash loan attack valued at $197 million. The protocol later relaunched in September 2024 with a modular, developer-oriented v2 protocol version, attracting over $387 million in deposits by March 2025.