BlackRock sBUIDL Enters DeFi with Euler on Avalanche Network

BlackRock sBUIDL Integration with Euler Brings DeFi to Real Assets

BlackRock, the world’s largest asset manager, has made its first direct move into decentralized finance. Its $3 billion tokenized Treasury fund, called BUIDL, is now integrated with the Euler protocol on the Avalanche blockchain. This is a huge step for conventional finance joining the DeFi world as reported by The Block’s article. 

A Big Move Into DeFi

The new BlackRock framework uses a unique version of BUIDL, which is named as sBUIDL. It is a token developed using the sToken system created by Securitize. This setup enables sBUIDL to utilize usual crypto tokens in Decentralised Finance. It is an ERC-20 token, which means it operates well with Ethereum-based infrastructures, and now it can be used as collateral on the Euler platform. 

What This Means for Users 

With this new infrastructure, users can borrow AUSD or USDC by leveraging their sBUIDL tokens as collateral. This opens the door for investors to earn more from their assets without having to sell them. On top of that, users can also earn AVAX token rewards and still receive the underlying yield from the BUIDL fund, which is made up of U.S. short-term Treasury bonds and repurchase agreements. 

This means you can now lend or borrow using real-world financial assets, all while staying in the crypto world.

Euler Is Back and Stronger

Euler Finance is the DeFi protocol that makes this all possible. It is an Ethereum-compatible platform, which is non-custodial; it facilitates users to borrow and lend cryptocurrency. In 2023, it faced a big setback when it was hacked for $197 million due to a bug in one of its smart contracts. But it came back.

In September 2024, it relaunched with a better and more secure version, known as Euler v2, which is focused on giving developers more control. By March 2025, it had already gained over $387 million in deposits.

Re7 Labs Behind the Tech

The incorporation of sBUIDL with Euler was made possible with the assistance of Re7 Labs, which is a blockchain development group. They helped create the connection between sBUIDL and the lending framework. Ensuring everything operates seamlessly on Avalanche.

Why This Is a Big Deal

It is the first time a huge, real-world fund like BUIDL of Blackrock is directly working with a DeFi platform. It depicts that conventional finance is now starting to take DeFi seriously. It also proves that tokenized RWAs, like Treasury bonds. It can be present on blockchains and be used in Decentralised Finance applications.

sBUIDL of BlackRock keeps the value of BUIDL and converts it into a usable token that fits appropriately into the DeFi system. It enables users to use these digital assets without losing access to their primary investment or its yield.

Final Thoughts 

BlackRock going ahead on the DeFi platform through Euler is a huge step forward for the crypto industry. It combines conventional financial systems with blockchain-compatible tools. As it gives more authority and alternatives to crypto investors. With this move, DeFi could become a prominent platform in no time.