Amid the growing popularity of decentralized finance (DeFi), Securitize and Ethena have introduced the ability to swap between BlackRock's tokenized fund BUIDL and the stablecoin USDtb around the clock.
What are BUIDL and USDtb?
BUIDL, or BlackRock USD Institutional Digital Liquidity Fund, is a tokenized fund providing access to traditional assets. USDtb is a stablecoin with a circulating supply of over $113 million, primarily backed by BUIDL.
New Opportunities for Traders
With the launch of atomic swaps, users can exchange BUIDL and USDtb at any time. This expands access to various DeFi strategies that incorporate USDtb, allowing operations without off-chain intermediaries. According to Securitize, this opens new liquidity options for both CeFi and DeFi participants.
Risks and Transparency
Despite the advantages, there is a risk of systemic dependence on BUIDL. Should the fund face issues, it could impact USDtb’s backing. Nonetheless, the system aims to balance transparency and capital efficiency through verified reserves and audited smart contracts.
The introduction of 24/7 swaps between BUIDL and USDtb marks an important step towards integrating traditional and decentralized finance, opening up new opportunities for traders and investors.
