BlackRock debuts a $533M DeFi Fund alongside Curve and Elixir. This prominent role is set to expand further as BlackRock’s $533 million BUIDL fund, along with other institutional funds tokenized by Securitize, will soon be able to access the DeFi ecosystem via Elixir’s deUSD protocol.
This collaboration by Curve, Elixir and institutional funds unlocks massive upside potential for the DeFi space, opening the door for up to $1B in institutional real world assets (RWAs) to mint deUSD, collateralized yield generating synthetic dollar.
The majority of deUSD trading and liquidity already happens on Curve — more than $60 million (approximately 60 percent of the total liquidity) is currently sitting across four key trading pools on the Ethereum network.
Securitize and BlackRock’s BUIDL Fund
This collaboration is facilitated by Securitize, a company that supports the bridge between traditional capital markets and blockchain by tokenizing real world assets.
As an SEC-registered platform, Securitize has already secured over $1 billion of institutional assets on chain, already bringing in Blackrock’s $533 million BUIDL fund as a shining example.
BUIDL Fund, named BlackRock USD Institutional Digital Liquidity, is a tokenized form of traditional dollar based investments, for example U.S. Treasury bills and repurchase agreements.
The BUIDL fund importantly, has a stable dollar peg and pays automatically yields in holders onchain wallet every month as new tokens are minted.
Currently, the BUIDL fund allocated $440 million on the Ethereum network and $93 million across other blockchain networks.
Also Read: BlackRock CEO Forecasts Ethereum Boom & Bitcoin’s Shift into Multi Trillion Asset
Elixir’s deUSD Protocol
Elixir is a blockchain network that specializes in orderbook exchange infrastructure and the development of deUSD, a fully collateralized, yield-bearing synthetic dollar.
The integration of the BUIDL fund and other tokenized institutional assets into Elixir’s deUSD protocol further strengthens the DeFi ecosystem.
It provides a stable, yield-generating dollar-denominated asset for a wide range of applications and users.
Recent BlackRock Developments
In a related development, Nasdaq Inc. recently announced its intention to list options on BlackRock’s Bitcoin exchange-traded fund (ETF), giving cryptocurrency investors more trading alternatives.
This move represents a significant milestone in the integration of digital assets into traditional financial markets.
Additionally, BlackRock’s spot Bitcoin ETF, known as IBIT, has surpassed the $2 billion trading volume milestone, indicating the growing demand for institutional-grade exposure to the cryptocurrency market.