Elixir Partners with Curve to Bring BlackRock's BUIDL to DeFi

In a groundbreaking move to expand access to decentralized finance (DeFi), decentralized exchange Curve has teamed up with blockchain network Elixir to integrate BlackRock’s tokenized money market fund, BUIDL, into the DeFi ecosystem. The collaboration, announced on November 29, introduces a new opportunity for token holders to mint deUSD, Elixir’s yield-bearing stablecoin, against BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).
Minting deUSD with BlackRock's Tokenized Money Fund
As part of this partnership, token holders will be able to mint deUSD — a synthetic dollar that generates yield — by using BUIDL, BlackRock’s tokenized money market fund. This will allow institutional investors and other participants to bring real-world assets (RWAs) into the DeFi space. The minted deUSD can then be swapped for other DeFi stablecoins, such as USD Coin (USDC), Tether (USDT), and Frax, within Curve’s liquidity pools.
Curve’s announcement highlighted the potential for up to $1 billion in institutional capital to mint deUSD, effectively creating a yield-bearing stablecoin from BUIDL. At present, Curve hosts the majority of deUSD trading and liquidity, with approximately $64 million — or 60% — of the total liquidity for deUSD already in Curve’s pools.
Liquidity and Yield Opportunities for Users
Liquidity providers (LPs) will also benefit from the partnership, as they can earn rewards for supplying liquidity to the Curve pools. According to Elixir’s website, some deUSD stakers can earn annual percentage rates (APRs) as high as 40%, which makes this a potentially attractive option for investors seeking high-yield stablecoin opportunities within the DeFi space.
As of November 29, Curve’s total value locked (TVL) was nearly $2 billion, underscoring the platform’s dominance in the decentralized exchange (DEX) sector. This partnership will likely bolster Curve’s position as a leading player in the DeFi liquidity and stablecoin ecosystem.
BlackRock’s Tokenized Money Market Fund
BUIDL, tokenized by Securitize, is a money market fund that primarily invests in short-dated U.S. Treasury bills (T-Bills) and similar low-risk, interest-bearing securities. BUIDL is currently the largest tokenized Treasury fund in terms of assets under management (AUM), with competition coming from funds like the Franklin OnChain US Government Money Fund (FOBXX), which holds around $540 million in AUM, and the $450 million AUM of other tokenized Treasury products.
On November 13, BlackRock expanded BUIDL’s reach by launching it on multiple blockchain networks, including Aptos, Arbitrum, Avalanche, Optimism, and Polygon. This expansion further enhances the accessibility of BUIDL to the DeFi space, tapping into the growing demand for tokenized real-world assets.
Surge in Demand for Tokenized Real-World Assets
The demand for tokenized real-world assets (RWAs), particularly those linked to low-risk U.S. Treasury bills and other money market instruments, has skyrocketed in 2024. As of November 29, tokenized Treasury products boast a combined total value locked (TVL) of approximately $2.5 billion, a more than threefold increase from the start of the year. This surge reflects growing institutional interest in blockchain-based solutions for secure, yield-generating investments.
According to RWA.xyz data, tokenized RWAs represent a massive $30 trillion market opportunity globally. Colin Butler, Polygon’s global head of institutional capital, told Cointelegraph that the growth of tokenized RWAs is a key area of focus for institutional investors, positioning blockchain networks to tap into a significant and growing market.
Conclusion
The partnership between Elixir and Curve represents a major step in bridging traditional financial instruments with the DeFi space. By integrating BlackRock’s tokenized money market fund, BUIDL, into the DeFi ecosystem, this collaboration opens new doors for institutional investors looking to leverage the benefits of decentralized finance while maintaining exposure to low-risk, yield-generating assets.
As the market for tokenized real-world assets continues to expand, we can expect further innovations and partnerships that bring institutional capital into the world of DeFi. This move underscores the increasing importance of tokenized assets in the financial ecosystem and the growing convergence between traditional finance and decentralized technologies.
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