Securitize launches "sBUIDL" on Euler to unlock on-chain Liquidity, is RWAFi's spring coming?

Securitize launched a composable sBUIDL Token, allowing BlackRock's largest tokenized US bond fund BUIDL to enter the DeFi world, achieving the first direct integration through the lending protocol Euler on Avalanche, symbolizing the true entry of traditional financial assets into the on-chain ecosystem, and is expected to inject unprecedented liquidity and utility into tokenized assets.

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

BUIDL is a digital dollar liquidity fund issued by BlackRock, targeting institutions, with investment targets including short-term U.S. government bonds and repurchase agreements. The fund's scale is now nearing $3 billion. Although BUIDL itself is an ERC-20 Token, due to regulatory considerations, it cannot directly participate in open DeFi protocols, resulting in a large amount of assets just passively lying on-chain.

( BlackRock moves forward with Solana! BUIDL market capitalization has reached 1.7 billion USD, firmly sitting on the throne of "tokenized government bonds" )

Securitize's newly launched sBUIDL can be seen as the "DeFi packaged version" of BUIDL, minted through its proprietary sToken Vault technology. After investors lock up their BUIDL in the Securitize vault, they will receive 1:1 redeemable sBUIDL, transforming originally 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 Launches on Euler Lending Market: Unlocking RWA Liquidity

The first practical application of sBUIDL this time chooses to cooperate with the restarted Euler Finance and is deployed on the Avalanche blockchain.

1/ A historic first in Decentralized Finance.

BlackRock支持的sBUIDL，由@Securitize發行，現已在Euler上線。

It’s sBUIDL’s first ever direct Decentralized Finance 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 USD due to a hacking incident in 2023. However, with the relaunch of version 2 in 2024, it has regained market attention, and as of now, the TVL has exceeded 900 million USD.

This integration allows sBUIDL to be accepted as collateral on Euler, with a maximum loan-to-value ratio of 92.5% for (LTV). It not only unlocks the liquidity of RWA but also brings it into the mainstream borrowing cycle of Decentralized Finance.

Institutional capital + public chain liquidity = attractiveness

Through sBUIDL, BUIDL holders are able to:

Collateralize and lend stablecoins such as USDC, USDT, and AUSD (.

Extract liquidity without selling assets

Participate in other DeFi protocols within the Avalanche ecosystem.

Earn AVAX rewards to enhance asset utilization efficiency.

This structure transforms the traditional "buy and hold" asset strategy into a dynamic investment approach that is "composable, transferable, and strategically operable," which holds great appeal 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 RWA 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 enter DeFi in the future, which must be of great interest to both VanEck and Robinhood.

) The scale of securities tokenization has reached 22.6 billion! SEC Chair Atkins: BlackRock and Franklin have already positioned themselves, and regulatory frameworks need to keep pace with the times (

BV DAO founder @cmdefi also pointed out that sBUIDL has successfully lifted the restrictions on tokenized assets, and it is expected that other mainstream protocols like Aave will soon follow suit.

The first year of RWA liquidity officially begins: the intersection of institutional funds and the DeFi world.

This integration is the world's first case of an institutional-grade tokenization fund directly entering DeFi, which is of extraordinary significance. It not only opens the door for RWA to be truly applied on-chain, but also provides a model for institutional capital to explore DeFi applications, achieving a qualitative transformation from "on-chain" to "liquidity":

The birth and application of sBUIDL is an important milestone for RWAFi's entry into the open finance sector.

)From the Document Crisis to Everything on-chain: Why Blockchain is an Inevitable Path for the Digital Transformation of Capital Markets?(

It is not just a new asset class, but a starting point for a new era: "Traditional finance and the on-chain world are no longer parallel universes, but a combination that can interact, collaborate, and co-create liquidity."

This article Securitize launches "sBUIDL" landing on Euler unlocking on-chain Liquidity, is RWAFi's spring coming? First appeared in Chain News ABMedia.