Asset tokenization platform Securitize announced on Thursday that the tokenized fund BUIDL, issued by asset management company BlackRock, has been listed on the lending protocol Euler on the Avalanche blockchain through Securitize’s proprietary vault technology, achieving the first direct integration of this nearly $3 billion on-chain national debt fund with decentralized finance (DeFi) protocols.
According to an official article, this integration is built on Securitize’s sToken Vault technology, enabling tokenized products like BUIDL to be transformed into a composable ERC-20 token, which endows native DeFi functionalities while preserving the integrity of the underlying assets.
BUIDL investors can lock their tokenized securities in Securitize’s vault and mint sBUIDL to engage in various DeFi operations. sBUIDL can be redeemed at any time on a 1:1 basis for BUIDL fund, including accrued earnings.
According to previous reports from Zombit, the BUIDL issued by BlackRock will invest 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 analysis company RWA.xyz shows that BUIDL is currently the highest market cap tokenized public bond product, reaching $2.87 billion, with the second being BENJI issued by Franklin Templeton.
Integration with DeFi Protocols
According to the announcement, this integration with the lending protocol Euler was developed by Re7 Labs, allowing sBUIDL to be used as collateral within 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 suffered a flash loan attack worth $197 million in 2023 due to a vulnerability in the “donateToReserves” function, which lacked liquidity checks, allowing attackers to manipulate collateral and debt tokens. The protocol later relaunched in September 2024, introducing a modular, developer-oriented version 2 protocol, which by March 2025 had attracted over $387 million in deposits.
