Originally published on: November 29, 2024
Curve, a decentralized exchange, has teamed up with the blockchain network Elixir to provide wider access to decentralized finance (DeFi) by tokenizing BlackRock’s money market fund. This collaboration was announced on Nov. 29.
Tokenholders will soon have the opportunity to create Elixir’s yield-bearing stablecoin, deUSD, using BlackRock USD Institutional Digital Liquidity Fund (BUIDL), as stated by Curve.
Users can then exchange deUSD for other stablecoins in the DeFi space, such as USD Coin (USDC), Tether (USDT), and Frax, through Curve’s liquidity pools.
According to Curve, up to $1 billion in institutional real-world assets (RWAs) can now generate deUSD, a synthetic dollar that offers yields.
The majority of deUSD trading and liquidity is already hosted on Curve, with approximately $64 million (about 60% of total liquidity) in Curve pools, as per the announcement.
Curve also mentions that liquidity providers (LPs) can earn rewards for supplying liquidity to the pools. Elixir’s website advertises APRs of up to 40% for certain deUSD stakers.
As of Nov. 29, Curve has nearly $2 billion in total value locked (TVL), making it a prominent decentralized exchange, according to DefiLlama.
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BUIDL, tokenized by Securitize, is a money market fund that primarily invests in short-term United States Treasury bills (T-Bills) and similar low-risk, interest-bearing securities.
With the largest assets under management (AUM), BUIDL is followed by the Franklin OnChain US Government Money Fund (FOBXX), with AUM of about $540 million and $450 million, respectively. On several blockchain networks, including Aptos, Arbitrum, Avalanche, Optimism, and Polygon, BlackRock launched BUIDL on Nov. 13.
Elixir revealed plans on Nov. 19 to introduce a liquid staking token (LST) for BUIDL and other tokenized securities.
There is a growing demand for tokenized RWAs offering secure yields from T-Bills and other money market instruments. As of Nov. 29, tokenized Treasury products total around $2.5 billion in TVL, a significant increase since the beginning of 2024, according to RWA.xyz.
Collectively, tokenized RWAs present a $30 trillion market opportunity worldwide, according to Polygon’s global head of institutional capital, Colin Butler.
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