Elixir Teams Up With Securitize To Tap BUIDL Liquidity With DeFi Yields

Web3 teams are increasingly looking to tap into BlackRock’s tokenized treasuries fund, BUIDL, for DeFi composability.

On Nov. 19, Elixir, a team behind the deUSD stablecoin, announced a partnership with Securitize, a real-world asset (RWA) tokenization platform, to offer new sources of yield to holders of BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).

Exilir said its newly announced deUSD RWA Institutional Program follows months of design and more than $1 billion in capital interest expressed by tokenized RWA holders, allowing users to access deUSD yields. DeUSD yield is generated through a combination of funding rates and exposure to U.S. treasury assets via Sky’s USDS stablecoin.

“This joint program allows Blackrock BUIDL and other RWA holders to seamlessly access DeFi using deUSD as the primary currency,” Elixir said. “Holders of Securitize tokenized assets like Blackrock’s BUIDL and Hamilton Lane’s SCOPE can now access DeFi apps via deUSD with isolated yield exposure.”

Elixir noted that deUSD currently boasts $110 million worth of on-chain liquidity. The program also allows users to redeem RWAs for USDC.

BUIDL’s growth

The news comes as BlackRock is seeking to promote new use cases for BUIDL.

Last month, Bloomberg reported that BlackRock and Securitize had entered discussions with top centralized exchanges including Binance, Deribit, and OKX regarding supporting BUIDL as collateral for derivatives trading.

BUIDL has enjoyed explosive growth since going live in March, with the fund overtaking the Franklin OnChain U.S. Government Money Fund (FOBXX) within six weeks of launching. BUIDL now accounts for 22% of the combined $2.42 trillion market cap of tokenized treasuries with $541.8 million, according to Rwa.xyz.

The capitalization of tokenized treasuries is up 214% year-to-date from $769.2 million.

Last week, BUILD launched five new networks following its debut on Ethereum, with the fund now live on Optimism, Arbitrum, Polygon, Avalanche, and Aptos as well.

FOBXX has also expanded onto new chains in recent months, with the fund live on Polygon, Arbitrum, Aptos, Base, and as of last week, Ethereum. FOBXX is the third-largest tokenized treasuries fund with $410.5 million, ranking behind BlackRock, and Ondo’s Ondo US Dollar Yield (USDY) with $452.4 million.