Crypto News – Securitize Launches sToken: Unlocking Liquidity for Real-World Assets in DeFi

Crypto News – How Securitize’s New sToken is Revolutionizing Asset Tokenization in DeFi

Crypto News – Tokenization firm Securitize has launched the sToken, a new way for institutional investors to unlock liquidity from real-world assets (RWAs) while continuing to earn yield. Developed in collaboration with Elixir, a decentralized finance (DeFi) project, the sToken is based on Ethereum’s ERC-4626 token standard. This innovation allows holders of tokenized RWAs to convert assets into deUSD, Elixir’s decentralized U.S. dollar token, and participate in DeFi without losing out on yield.

Unlocking DeFi with Composability and Liquidity

The “deUSD RWA Institutional Program” enables Securitize users to utilize their assets in DeFi through a “composable” token structure, providing deeper liquidity and better returns than traditional tokenized funds like BlackRock’s BUIDL. The initiative is a significant step in the growing blockchain-based tokenization space, aiming to overcome existing challenges related to legal transferability and DeFi integration.

Elixir and sToken’s Role in DeFi

Through this partnership, Elixir will hold a derivative of BlackRock‘s BUIDL token, called sBUIDL, minted by Securitize users. Philip Forte, Elixir’s CEO, emphasized that this integration will provide holders of tokenized RWAs with access to on-chain liquidity via deUSD.

Strategic Partnerships and Future Growth

In October, BlackRock, Securitize, and Circle teamed up, allowing BUIDL holders to sell their shares to Circle in exchange for USDC, further expanding liquidity options for tokenized assets.

This collaboration highlights how blockchain and tokenization are transforming asset liquidity and setting the stage for broader adoption in the DeFi sector. Securitize’s sToken is expected to be a key driver in enabling seamless integration of RWAs into DeFi ecosystems.