Blackrock’s BUIDL fund has grown to $2.9 billion in market cap, up 346% this year. BounceBit uses BUIDL as collateral in a Bitcoin basis yield strategy delivering around 24% APY. Euler Finance integrated sBUIDL tokens for borrowing, boosting its TVL to $924 million. Securitize, BUIDL’s token issuer, recently received strategic investment from Jump Crypto, signalling strong confidence in asset tokenisation.
Blackrock’s BUIDL (Blackrock USD Institutional Digital Liquidity Fund) has recorded significant growth and new integrations in the digital asset space throughout May, reflecting its expanding role in real-world asset (RWA) tokenisation and decentralised finance (DeFi).
Since the start of 2025, the BUIDL fund’s market capitalisation has increased sharply, now standing at $2.9 billion. This marks a 346% rise from January, underlining the growing institutional interest in tokenised digital liquidity funds.
BounceBit leverages BUIDL in innovative yield strategy
One of the recent developments involves BounceBit, a firm focused on RWA investment and strategy, which announced a new yield strategy utilising a three-month Bitcoin basis and options trade. This strategy, supported by BUIDL as collateral, demonstrates the practical use of the fund in the emerging CeDeFi sector—a hybrid of centralised and decentralised finance.
BounceBit describes its approach as “CeDeFi Reimagined” and operates its own Layer 1 blockchain to back its yield and brokerage strategies. The Bitcoin basis trade involves holding the spot asset while shorting the derivative to collect yield through funding, a method that can be particularly effective in bullish market conditions when managed carefully. According to BounceBit, the proof-of-concept trade currently delivers an annual percentage yield (APY) of approximately 24%.
Euler finance integrates BUIDL tokens to expand DeFi utility
In addition to BounceBit’s activation, Euler Finance, a DeFi protocol, launched sBUIDL as collateral on its platform on 15 May. This step marks a direct DeFi integration of Blackrock’s tokenised RWA fund, allowing sBUIDL holders to borrow stablecoins such as USDC or AUSD through Euler.
The sBUIDL token, issued by Securitise as an ERC-20 standard token, is composable and interoperable within the Ethereum ecosystem. Euler’s total value locked (TVL) has experienced substantial recovery and growth following a relaunch in September 2024, after a major hack in March 2023 significantly impacted its assets under management. Euler’s TVL currently reaches a record $924 million, a 740% increase since the beginning of the year.
These DeFi integrations occur shortly after Securitise, the tokenisation provider for BUIDL, secured a strategic investment from Jump Crypto, a market-making firm. Although the investment sum remains undisclosed, it indicates further confidence from leading players in the progress of asset tokenisation and digital finance infrastructure.
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