- BlackRock’s BUIDL, a blockchain-based money market fund, can now be used as collateral on major crypto exchanges.
- Traders can post BUIDL, which pays about 4.5% annual yield, instead of stablecoins or volatile cryptocurrencies.
- crypto.com and Deribit have begun accepting BUIDL as collateral for various trading services.
- BUIDL’s acceptance offers lower collateral requirements and increased efficiency for institutional clients.
- Coinbase’s pending acquisition of Deribit may extend BUIDL’s reach across more trading platforms.
BlackRock’s BUIDL, a money market fund issued on a public blockchain through a partnership with Securitize, will now serve as accepted collateral on Crypto.com and Deribit. This change gives traders a new option for backing their trades, using a blockchain-native fund tied to U.S. Treasurys, instead of relying only on stablecoins or cryptocurrencies like Bitcoin and ether.
The BUIDL fund pays an annual yield of about 4.5%, according to statements by Securitize officials. Since launching in March 2024, it has already grown to $2.9 billion in assets. Major holders include Ondo Finance and Ethena Labs, both active in tokenizing real-world and digital assets.
On Crypto.com, institutional clients in select jurisdictions can use BUIDL as collateral across spot, margin, derivatives, and OTC trading. Eric Anziani, President and COO, confirmed this rollout to the platform’s more than 140 million global users. Deribit, with over $1.1 trillion in options trading volume in 2024, now also allows institutional clients to post BUIDL as collateral for futures and options, as well as on its spot exchange.
"This is a major turning point," said Michael Sonnenshein, COO at Securitize. "We’re really starting to see not just the emergence but a real solidification of tokenized securities becoming a challenger to stablecoins as the common denominator across the crypto ecosystem. They’re now becoming what we would consider programmable productive capital." Deribit CEO Luuk Strijers stated that offering BUIDL increases choice and efficiency, especially for traditional firms holding large U.S. dollar reserves.
Traditionally, traders faced a choice: use stablecoins, which provide stability but no yield, or riskier assets like bitcoin, which can lose value quickly. Having the option to use BUIDL means traders can back leveraged trades with an asset that both generates yield and stays relatively stable.
With Coinbase in the process of acquiring Deribit for $2.9 billion, BUIDL could soon become available to an even larger base of institutional users. This step may help further the adoption of tokenized Treasurys in the wider cryptocurrency trading market.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Prenetics Invests $20M in Bitcoin, Aims for Top Healthcare Holder
- Startups Fast-Track FedRAMP Authorization With DevSecOps Approach
- Senate Passes GENIUS Act, First-Ever Stablecoin Law Advances
- Blockchain Group boosts Bitcoin holdings to 1,653 BTC worth $170M
- Iran Throttles Internet After Israeli Cyberattacks Escalate Tensions
