BlackRock’s tokenized U.S. Treasury fund (BUIDL), issued by Securitize, has been announced to be accepted as collateral for institutional trading on Binance, the world’s largest crypto exchange by volume, as stated in a recent press release.
Traders can now use BUIDL as off-exchange collateral by posting the token with a custody partner, allowing them to trade on Binance while still meeting compliance requirements. This move provides institutional traders with more flexibility in utilizing yield-generating assets within regulatory frameworks.
“Our institutional clients have expressed the need for interest-bearing stable assets that can serve as collateral while actively trading on our platform,” said Catherine Chen, head of VIP & Institutional at Binance.
Securitize has also expanded the tokenized fund to the BNB Chain, enabling investors to utilize the asset in decentralized finance (DeFi) applications within the ecosystem, enhancing its interoperability.
The integration of tokenized real-world assets (RWA) into the crypto economy, including funds, bonds, and credit, is on the rise. Tokenized U.S. Treasuries offer investors the opportunity to earn yield by parking idle cash on blockchains. These assets are increasingly utilized as reserve assets in DeFi protocols or as collateral in trading and asset management.
“By allowing BUIDL to function as collateral across prominent digital market infrastructure, we are bridging traditional finance elements into the realm of onchain finance,” commented Robbie Mitchnick, BlackRock’s global head of digital assets.
BUIDL, which distributes yield to token holders based on the underlying U.S. Treasury holdings, stands as the largest tokenized money market fund on public blockchains, amassing $2.5 billion in assets since its launch in March 2024, according to RWA.xyz data.
For more insights, explore Tokenization Firm Securitize’s plans for a public listing through a SPAC deal at a valuation of $1.25 billion.