DeFi
Manta-based stablecoin MUSD relies on BlackRock’s BUIDL for support
Holders of MUSD will earn monthly returns derived from BUIDL’s investments in U.S. Treasuries.
The layers of synergy between DeFi and tradfi are deepening.
On June 27, Manta announced that wUSDM, a yield-bearing stablecoin from Mountain Protocol, is now backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the Ethereum-based tokenized U.S. Treasury fund from the world’s largest asset manager, BlackRock.
“Manta Network is proud to be an early adopter of the BUIDL Fund by backing its collateralized assets via the on-chain yield-producing stablecoin,” Manta said“This marks a new chapter in the long-term growth and security of all wUSDM holders. »
USDM previously invested its assets directly in U.S. Treasuries. USDM currently ranks 25th among stablecoins with a market cap of $47.1 million, according to CoinGecko.
BlackRock, a company managing $9.1 trillion in assets under management (AUM), launched its BUIDL Fund on March 20. The deployment was a major vote of confidence in both on-chain finance and the Ethereum network.
“This is the latest step forward in our digital asset strategy,” said Robert Mitchnick, head of digital assets at BlackRock. “We are focused on developing digital asset solutions that help solve real problems for our clients.”
All of BUIDL’s assets are invested in cash, U.S. Treasury bills and repurchase agreements, providing shareholders with a stable, low-risk source of return. The fund’s tokenized shares offer a stable value of $1 each, with the fund paying dividends accrued daily on a monthly basis in the form of additional tokens.
BUILD quickly appeared as the largest tokenized treasury fund, surpassing Franklin Templeton’s OnChain US Government Money Fund (FOBXX) – which went live in April 2021 – within seven weeks of launch with $375 millionaccording to Rwa.xyz.
BUIDL continues to lead the industry with $481.8 million in assets under management, representing 27% of the on-chain treasury industry’s $1.77 billion market cap. The capitalization of on-chain treasuries is up 130% since the beginning of the year.
Several DeFi protocols on the Manta network support USDM, allowing users to access additional yields on top of BUIDL dividends.
Manta is currently the 10th largest Layer 2 network by total value locked with $643.2 million, according to L2beat.
Related: Manta CeDeFi surpassed $100 million in TVL after one week