BlackRock’s tokenized U.S. Treasury fund (BUIDL), issued by Securitize, will now be accepted as collateral for institutional trading on Binance, the world’s largest crypto exchange by volume, the firms said in a Friday press release.
Using BUIDL as off-exchange collateral means traders can post the token with a custody partner, rather than directly on the exchange, as collateral while still trading on Binance. The move gives institutional traders more flexibility to use yield-generating assets while staying within compliance frameworks, the firms said.
“Our institutional clients have asked for more interest-bearing stable assets they can hold as collateral while actively trading on our exchange,” Catherine Chen, head of VIP & Institutional at Binance, said in the statement.
Securitize is also expanding the tokenized fund to the BNB Chain BNB$931.31, allowing investors to use the asset within the ecosystem’s decentralized finance (DeFi) applications, increasing its interoperability.
The moves come as tokenized real-world assets (RWA) such as funds, bonds, and credit are increasingly becoming part of the crypto economy. Tokenized U.S. Treasuries allow investors to park idle cash on blockchains to earn a yield. They are increasingly used as a reserve asset for decentralized finance (DeFi) protocols or collateral in trading and asset management.
“By enabling BUIDL to operate as collateral across leading digital market infrastructure, we’re helping bring foundational elements of traditional finance into the onchain finance arena,” Robbie Mitchnick, BlackRock’s global head of digital assets, said in a statement.
BUIDL, which pays out a yield to token holders from the underlying U.S. Treasury holdings, is the largest tokenized money market fund on public blockchains. It has gathered $2.5 billion of assets since its March 2024, RWA.xyz data shows.
Read more: Tokenization Firm Securitize Aims for Public Listing Via SPAC Deal at $1.25B Valuation