What is sBUIDL by BlackRock? SBUIDL is BlackRock’s first tokenized fund with native decentralized f
What is sBUIDL by BlackRock?
SBUIDL is BlackRock’s first tokenized fund with native decentralized finance (DeFi) capabilities.
SBUIDL is the DeFi-compatible version of BlackRock’s $1.7-billion tokenized money market fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). BlackRock’s sBUIDL fund is more than just a digitized version of a treasury; it’s a glimpse into a future where traditional finance flows through decentralized pipes.
While the BUIDL fund itself launched in March 2024 on Ethereum, sBUIDL is its ERC-20 counterpart, designed to interact with DeFi protocols. BUIDL holds short-term US Treasurys, cash and repurchase agreements (repos), whereas sBUIDL allows holders to interact with these assets onchain.
Repurchase agreements (repos) are short-term, collateralized loans where securities are sold with an agreement to repurchase them later for a higher price. Meanwhile, BUIDL is a tokenized money market fund aiming to generate stable yield while minimizing risk, including repos alongside Treasurys and cash:
- Adds liquidity
- Maintains capital preservation
- Helps with yield generation in a very short duration.
Repos are a standard part of traditional money market funds for exactly these reasons.
Released in May 2025, sBUIDL is issued by Securitize and allows tokenholders to earn yields backed by top traditional trusted financial instruments, such as short-term US government debt. SBUIDL is minted from the BUIDL fund via Securitize’s sToken vault technology.
Securitize’s sToken framework issues tokens with onchain transfers, compliance and investor rights baked into the smart contract. As of May 2025, sBUIDL is currently available on Ethereum and Avalanche, with integrations into DeFi protocols like Euler.
How does sBUIDL work with DeFi?
SBUIDL is an ERC-20 token that represents a 1:1 claim on the BUIDL fund. It brings tokenized US Treasurys to DeFi protocols, starting with Euler.
Until now, most tokenized real-world assets (RWAs) stopped at the “representation” layer, essentially putting a real-world asset onchain but not allowing it to be used in DeFi protocols due to compliance restrictions, lack of programmability or the absence of composability. SBUIDL changes that.
SBUIDL unlocks the ability to use US Treasurys (originally backing the BUIDL Fund) in DeFi the same way you would use Ether (ETH) or USDC (USDC) on a DeFi platform. This is a fundamental shift. Treasurys, one of the most stable, low-risk yield sources globally, were previously siloed in traditional markets. With sBUIDL, they are now programmable and able to live inside smart contracts and interact with DeFi applications.
Furthermore, sBUIDL ensures Know Your Customer (KYC)-compliant onboarding without compromising DeFi’s programmability.
In May 2025, Euler Finance became the first DeFi protocol to accept sBUIDL as collateral. That means users can now lend, borrow and build on top of US Treasurys inside a permissionless environment. And it is as seamless as this:
- Securitize issues sBUIDL as a compliant ERC-20 token.
- Users onboard through Securitize and receive sBUIDL tokens.
- These tokens are deposited into Euler, which supports yield generation, collateralization and leverage.
Thus, Treasurys are no longer just passive, offchain instruments; they’re composable money legos in DeFi’s world. However, sBUIDL doesn’t give direct control over the underlying Treasurys — it represents exposure. The custody and redemption are handled by regulated intermediaries.
Did you know? Tokenized RWAs are projected to grow into a $16-trillion market by 2030, according to a report by Boston Consulting Group (BCG). That’s more than the current market cap of all cryptocurrencies combined.
What makes sBUIDL different from traditional funds?
BUILD is a programmable treasury asset that can live inside a smart contract.
On the surface, sBUIDL looks like any other fund backed by US Treasurys. But it is fundamentally different in how it operates. Traditional funds are built for the analog world: paper-heavy, slow-moving and restricted by intermediaries. SBUIDL is digital-native and designed for smart contracts, not spreadsheets.
This difference goes beyond speed or convenience. It’s about composability, the ability to plug into an open financial stack. With sBUIDL, the once-static treasury fund becomes dynamic collateral in DeFi:
- You can deposit it into a lending pool, bundle it into structured products, or create automated strategies, all without needing a custodian’s permission.
- Moreover, transparency is built-in. Instead of quarterly reports or delayed fund updates, sBUIDL offers real-time visibility into ownership and fund flow on the blockchain. And with compliance enforced at the contract level, it…
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