Securitize partners with Elixir to enable tokenization of RWA assets and conversion to the stablecoin deUSD, increasing liquidity for RWA and opening new doors to DeFi.
Securitize paves the way for RWA to integrate into DeFi
Securitize, a financial platform specializing in tokenizing Real World Assets (RWA), has introduced a new way for investors to access RWA liquidity while still earning yield through its sToken initiative.
This is the result of a partnership between its subsidiary Securitize Credit and the Elixir protocol’s synthetic dollar asset called deUSD, launched in July.
Based on Ethereum’s ERC-4626 — a token standard for launching “vaults” that represent interest sharing in yield tokens — sToken allows institutional investors holding Securitize-issued RWA assets to convert into deUSD, Elixir’s decentralized stablecoin, while still receiving yield on their original RWA assets.
In other words, the “deUSD RWA Institutional Program” opens up the possibility of using RWA assets in DeFi, without the capital value of the original RWA assets being diluted by tokenized funds like BlackRock’s BUIDL.
Seamlessly combining tokenization and DeFi
The program allows investors holding RWA to tokenize their assets and use them in the DeFi ecosystem, accessing liquidity through deUSD without worrying about regulatory barriers.
sToken will initially be limited to accredited holders of the BUIDL fund, with plans to support other assets including Hamilton Lane’s SCOPE fund in the future.
As part of the program, Elixir will hold a derivative of BUIDL, called sBUIDL, minted by Securitize users. According to Elixir, the partnership will drive TVL growth through Securitize’s large and diverse customer base, as well as expand deUSD across multiple blockchains.
Previously in April 2024, BlackRock, Securitize, and Circle partnered to allow BUIDL holders to sell their holdings for USDC and use Circle’s smart contracts to transfer BUIDL onto the blockchain.
Currently, the Arthur Hayes-backed Elixir project is allowing users to deposit ETH into the “Apothecary” smart contract to mint a token backed 1:1 with ETH, and receive Elixir points rewards called “Potions”. These tokens can then be used as collateral on decentralized orderbook exchanges such as Vertex, Bluefin, RabbitX, dYdX, ApeX, Orderly Network, and SynFutures. However, those minting sTokens from Securitize will not receive these rewards, avoiding the risk of Elixir’s liquidity being reduced.
The move is the latest demonstration of the growing scalability of blockchain-based tokenization. In addition to BlackRock’s BUILD fund, some of the world’s largest financial institutions such as UBS, Goldman Sachs, Franklin Templeton have also entered the space.
