Securitize, the leading tokenization platform bringing the world onchain, announced the launch of its new “sToken”, based on ERC-4626 vault technology. This new functionality, offered through subsidiary Securitize Credit, in partnership with Elixir’s “deUSD RWA Institutional Program” unlocks enhanced yield-opportunities and composability for more than $1B Real World Assets (RWAs) issued by Securitize across decentralized finance (DeFi).
Institutional holders of Securitize-issued RWAs can now access liquidity in deUSD within DeFi while continuing to receive yields from their underlying investments. This partnership further empowers protocols, foundations, funds and other Securitize clients to access investments from Wall Street’s most experienced managers without sacrificing DeFi-native opportunities.
“With the launch of this innovative sToken functionality, Securitize is enabling a new frontier in DeFi by making it possible to leverage any Real World Asset token issued using the DS Protocol,” said Securitize Co-founder & CEO Carlos Domingo. “This functionality not only provides liquidity options but also bridges the gap between traditional assets and the digital asset economy, offering investors more ways to manage and optimize their portfolios.”
Elixir Founder & CEO Philip Forte remarked, “Elixir is excited to partner with Securitize to bring this 0 to 1 innovation to DeFi. The Elixir Network is a purpose-built stack powering exchange orderbooks and deUSD (“Decentralized US Dollar”). For the first time ever, holders of tokenized real-world assets can natively use their assets onchain in DeFi, accessing unified liquidity via deUSD. These users continue to accrue yield directly from Securitize while keeping isolated collateral exposure. We believe this is just the first step to bridge the gap of liquidity between institutions and DeFi.”
Elixir Launches “deUSD RWA Institutional Program” in Partnership with Securitize
We are thrilled to announce the launch of the “deUSD RWA Institutional Program”, a collaboration withSecuritize designed to unlock utility and enhance yield for select Real World Assets (RWAs) issued by Securitize.
This program introduces over $1 billion of existing tokenized RWAs to DeFi for the first time, using deUSD as the cross-chain issuance and redemption mechanism.
Institutional holders of RWAs issued by Securitize can now mint and utilize deUSD within DeFi while continuing to receive yields from their underlying investments. This integration empowers protocols, foundations, and other Securitize clients to leverage deUSD’s composability and unified liquidity. It brings their RWA holdings on-chain as usable Total Value Locked (TVL), enabling them to use these assets within DeFi environments.
Bringing RWAs On-Chain: A Win-Win for DeFi and Traditional Finance
The tokenization of RWAs has been a key trend in the current crypto cycle. Many in the crypto ecosystem now recognize that collaboration with traditional institutional players—who are eager to leverage blockchain technology—offers mutual benefits. Tokenized US Treasuries, for instance, allow asset allocators such as blockchain foundations and funds to access treasury yields on-chain from large asset managers without off-ramping or taking unnecessary risks.
However, widespread adoption of RWAs has been hampered by significant legal and technical challenges, including regulatory restrictions on transferability and limited DeFi integration. We believe the next phase of RWA TVL growth requires compliant liquidity and composability solutions for these assets.
Addressing RWA Challenges with Securitize’s sToken Technology
By utilizing Securitize’s new innovative sToken technology, Elixir helps solve these RWA challenges while maintaining the integrity of deUSD’s backing. The Elixir network will hold minted sBUIDL tokens – which have 1:1 access to atomic USDC liquidity, as isolated backing.
Securitize customers minting deUSD through this partnership will not earn potion boosts via the Apothecary, but they will unlock valuable new utility, including:
- Access to highly liquid and composable deUSD without selling their underlying RWAs or foregoing their yield
- Support for native ecosystems through deUSD’s unified liquidity
- Growth in natively-usable TVL, driving demand for native assets and platforms
Benefits for the Elixir Network and deUSD Users
The Elixir network and deUSD users will benefit from:
- Sticky TVL growth driven by large, diverse Securitize customers
- Broader deUSD distribution and utility across multiple chains
- No Apothecary dilution or additional liquidity and backing risks
The deUSD RWA Institutional Program will initially be available to holders of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) token, with support for Hamilton Lane’s SCOPE and additional assets to follow.
Source: Elixir
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