BlackRock has announced the integration of its USD Institutional Digital Liquidity Fund (BUIDL) with a DeFi protocol on the Avalanche platform, marking the company's first move into decentralized finance.
Launch of sBUIDL and Interaction with DeFi
This week, BlackRock, in collaboration with Re7 Labs and Securitize, launched a protocol interaction that allows users to utilize the new sBUIDL token through Securitize’s technology. The integration provides participants with opportunities to earn while leveraging DeFi tools.
Technical Aspects of the Integration
The sBUIDL token has been issued through Securitize's vault system, enabling users to lock BUIDL and mint sBUIDL for DeFi use. BlackRock confirmed that the token will maintain full 1:1 redeemability for BUIDL, which holds short-term U.S. Treasuries and repos.
Potential and Strategy of the BUIDL Fund
The BUIDL fund, with over $500 million in assets, aims to offer a stable token value of $1 and pays daily accrued dividends directly to investors’ wallets. The fund plans to invest 100% of its assets in cash, U.S. Treasury bills, and repurchase agreements.
BlackRock's integration with DeFi on the Avalanche platform opens up new investment opportunities, allowing investors to earn from previously non-yielding assets.
