30s Summary
Securitize and Elixer are developing a liquid staking token (LST) for Blackrock’s BUIDL, potentially unlocking $1B in Real World Assets (RWAs) for decentralized finance platforms. The DeFi vaults are based on the Ethereum network, enabling RWA holders easier access to DeFi. Deposits into these vaults yield LSTs called “sBUIDL”, effectively tokenizing Blackrock’s digital money market fund, which principally invests in US Treasury Bills. The tokenizing of real-world assets, like T-Bills, offer low-risk returns, with tokenized US Treasury debt already holding $2.4B in assets. This trend could speed up Treasuries trading by reducing operational and settlement issues.
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Securitize and Elixer are getting together to cook up a liquid staking token (LST) for stuff like Blackrock’s money fund, BUIDL. This is a big deal in the crypto world! Elixer, who are bigwig players in blockchain for crypto exchanges, are leading the design for a program that will seriously boost yield-opportunities. This actually means that over $1B in Real World Assets (RWAs) can be let loose across decentralized finance platforms.
These DeFi vaults are based on something called the Ethereum network’s standard (basically, it’s a kind of blueprint for Ethereum). This standard allows Blackrock BUIDL and other RWA holders to dip into DeFi with greater ease.
BlackRock USD Institutional Digital Liquidity Fund or simply “BUIDL” was transformed into a digital form by Securitize. BUIDL is basically a money market fund that chucks its money primarily into US Treasury Bills (kinda like short-term government loans) and other low-risk schemes that can earn interest.
Once you deposit into these DeFi vaults, you’ll get LSTs named “sBUIDL”. This means that if you own BUIDL, you can now create sBUIDL and use it to breach into DeFi, all while raking in the dough from underlying yield. In other words, a whopping “$1B” in RWA has just been unlocked.
On Nov. 13, Blackrock expanded BUIDL onto several other blockchain networks. With these added chains, we’ll start to see more investors leveraging the underlying tech to make more efficient moves in the market.
The latest trend? Tokenized real-world assets (RWAs) that promise low-risk returns from stuff like T-Bills and other money markets. Tokenizing US treasury debt has about $2.4 billion in assets as of Nov. 19. BUIDL is actually the biggest tokenized treasury fund around in terms of just how much they manage.
Adding this feature to multiple chains means that BUIDL can be used within some of the top financial products and platforms on the blockchain across different ecosystems. You heard it right! From T-Bills to artworks, tokenized RWAs could present a global market chance worth $30 trillion.
In case you didn’t know, “tokenization” could potentially speed things up when trading Treasuries by cutting down operational and settlement hassles. Crypto’s such a wild ride, right?