BlackRock's DeFi-Compatible Treasury Fund

BlackRock has launched sBUIDL, a groundbreaking tokenized fund that merges traditional finance with decentralized protocols. This ERC-20 token represents a 1:1 claim on the $1.7 billion BUIDL fund, which holds short-term US Treasurys and repurchase agreements. Unlike conventional money market funds, sBUIDL enables onchain interaction with these assets through DeFi platforms.

The Mechanics Behind Tokenized Treasurys

Securitize's sToken technology powers sBUIDL, embedding compliance features directly into the smart contract. The framework maintains KYC requirements while allowing the tokens to function within permissionless environments. 【As of May 2025】, users can mint sBUIDL through Securitize's vault system and deploy the tokens across Ethereum and Avalanche networks.

——This represents the first time US government debt becomes programmable collateral in DeFi——

Transforming Treasury Management

Traditional treasury funds operate through slow, paper-based systems. sBUIDL introduces three revolutionary changes:

• Real-time transparency through blockchain tracking

• Automated compliance via smart contracts

• Integration with lending protocols like Euler Finance

Institutional Adoption Accelerates

BlackRock's move signals growing institutional confidence in blockchain infrastructure. The BUIDL fund's rapid growth to 【$1.7 billion AUM】 demonstrates strong market demand for tokenized real-world assets. Analysts project the RWA sector could reach $16 trillion by 2030, surpassing today's total crypto market capitalization.

Balancing Innovation With Risk

While sBUIDL offers new yield opportunities, users face unique challenges:

• Smart contract vulnerabilities in bridging solutions

• Regulatory uncertainty across jurisdictions

• Limited liquidity from KYC-gated access

The integration nevertheless marks a significant step toward merging TradFi reliability with DeFi flexibility. As more institutions follow BlackRock's lead, the financial landscape appears poised for transformation.