The decentralized exchange announced yesterday that it will collaborate with the asset management giant BlackRock and the blockchain network Elixir to build a bridge between traditional finance and DeFi.
According to the article, BlackRock will issue a tokenized US Treasury bond fund called BUIDL worth $533 million on the blockchain, and other institutionally funded assets tokenized by Securitize will enter the DeFi space through Elixir's deUSD protocol. This collaboration will allow up to $1 billion in real-world assets (RWA) to be minted as "yield-bearing synthetic US dollars deUSD".
Currently, Curve is hosting the majority of deUSD trading and liquidity, with $64 million (about 60% of the total liquidity) in Curve's liquidity pools (there are currently four main deUSD trading pools, including USDC, USDT, Dai, and Frax).
What is Securitize and the BlackRock BUIDL Fund?
Securitize is an asset tokenization company that has built a bridge between traditional finance and blockchain. As an SEC-registered platform, it has tokenized over $1 billion in institutional assets, with BlackRock's $533 million BUIDL fund being one of its flagship projects.
According to the article, the BUIDL fund (BlackRock USD Institutional Digital Liquidity) is a tokenized asset issued on multiple blockchain networks such as Ethereum, Arbitrum, and Optimism, with features including:
- Investing in secure assets such as US Treasuries and repurchase agreements.
- Maintaining a stable 1:1 US dollar peg.
- Automatically paying monthly yields to holders in the form of new tokens.
- Currently, the fund has $440 million on Ethereum, with the remaining $93 million distributed across other networks.
According to data from rwa.xyz, BUIDL is currently the largest tokenized US Treasury bond fund.
What is Elixir?
On the other hand, the article describes Elixir as a modular DPoS blockchain network focused on order book trading infrastructure and deUSD. deUSD is a fully collateralized, yield-bearing synthetic US dollar composed of stETH and US Treasuries managed through the MakerDAO USDS protocol, used to create neutral positions.
Furthermore, Elixir's new "RWA Institutional Program" allows institutional investors to use their tokenized assets more flexibly. For example, BUIDL token holders can now mint deUSD while maintaining their original investment yields.
However, only approved participants can currently mint and burn deUSD, with plans to gradually open it up to a wider user base in the coming months.
According to Curve's introduction, this collaboration not only adds a new use case for RWA, but also has a positive impact on DeFi liquidity. By introducing stable institutional capital, it can not only improve market stability, but also effectively alleviate the problem of on-chain liquidity shortage.
CRV has increased by 9.53% in the last 24 hours
Possibly driven by this news, the CRV price has entered an upward trend since the announcement, rising from a low of $0.5068 to a recent high of $0.5568, a gain of 9.37%.
As of now, the CRV price is currently at $0.5518, up 9.53% in the last 24 hours.
