Decentralized exchange Curve Finance announced yesterday that it will work with asset management giant BlackRock and blockchain network Elixir to build a bridge between traditional finance and DeFi.

According to the article, BlackRock's tokenized U.S. bond fund BUIDL, which is worth up to $533 million, and other institutional funds tokenized by Securitize will enter the DeFi field through Elixir's deUSD protocol. This cooperation will allow up to $1 billion in real-world assets (RWA) tokens to be minted into "yielding synthetic U.S. dollars deUSD."

Currently, Curve carries most of the deUSD transactions and liquidity, of which US$64 million (about 60% of the total liquidity) is in Curve's funding pool (there are currently four major deUSD trading pools, including USDC, USDT, DAI and FRAX).

What are Securitize and the BlackRock BUIDL Fund?

Securitize is an asset tokenization company that builds a bridge between traditional finance and blockchain by tokenizing physical assets. As a platform registered with the U.S. Securities and Exchange Commission (SEC), it has put more than $1 billion of institutional assets on the chain, and BlackRock's $533 million BUIDL fund is one of its flagship projects.

According to the article, BUIDL (BlackRock USD Institutional Digital Liquidity) is a tokenized asset issued on multiple blockchain networks including Ethereum, Arbitrum, and Optimism. Its features include:

  • Invest in safe assets such as U.S. Treasuries and repurchase agreements.

  • Maintains a stable 1:1 USD peg.

  • The earnings are automatically paid to the holder’s on-chain wallet every month in the form of newly added tokens.

  • Currently, the fund has $440 million on Ethereum, with the remaining $93 million spread across other networks.

In addition, according to rwa.xyz data, BUIDL is currently the largest tokenized U.S. Treasury bond fund.

What is Elixir?

On the other hand, according to the article, Elixir is a modular DPoS blockchain network focused on order book trading infrastructure and deUSD. deUSD is a fully collateralized, yield-bearing synthetic dollar composed of stETH and U.S. Treasuries managed through MakerDAO’s USDS Treasury Agreement, which is used to create neutral positions.

In addition, Elixir allows institutional investors to use their tokenized assets more flexibly in the newly launched "RWA Institutional Program". For example, BUIDL token holders can now mint deUSD while keeping the original investment income.

However, currently only approved participants can mint and destroy deUSD, and it is planned to be gradually opened to a wider range of users in the coming months.

According to Curve, this cooperation not only adds to the application scenarios of RWA, but also has a positive impact on DeFi liquidity. By introducing stable institutional funds, it not only helps to improve the robustness of the market, but also effectively alleviates the problem of insufficient liquidity on the chain.

CRV rose 9.53% in the past 24 hours

Perhaps inspired by this news, after the announcement, the price of CRV began to enter an upward trend, rising from a low of $0.5068 to an earlier high of $0.5568, an increase of 9.37%.

As of now, the price of CRV is $0.5518, up 9.53% in the past 24 hours.