BlackRock’s Tokenized Treasury Fund Now Collateral on Binance

BlackRock’s Tokenized U.S. Treasury Fund BUIDL Now Accepted as Collateral on Binance, Expanding Use in DeFi on BNB Chain

  • BlackRock’s tokenized U.S. Treasury fund, BUIDL, is now accepted as collateral for institutional trading on Binance.
  • Using BUIDL as off-exchange collateral gives traders flexibility to post collateral through custody partners while trading on Binance.
  • BUIDL is expanding to the BNB Chain to enable use within decentralized finance (DeFi) applications.
  • Tokenized real-world assets like BUIDL are increasingly integrated into the crypto ecosystem as yield-generating assets and collateral.
  • BUIDL is the largest tokenized money market fund on public blockchains, managing $2.5 billion of assets since launch.

BlackRock’s tokenized U.S. Treasury fund, known as BUIDL and issued by Securitize, will now be accepted as collateral on Binance, the world’s largest cryptocurrency exchange by trading volume, according to a statement released last Friday. This development allows institutional traders to use BUIDL as off-exchange collateral by posting the token with a custody partner while still trading on Binance.

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This change offers traders greater flexibility to utilize yield-generating assets while adhering to compliance requirements. “Our institutional clients have asked for more interest-bearing stable assets they can hold as collateral while actively trading on our exchange,” said Catherine Chen, head of VIP & Institutional at Binance.

Securitize is also broadening the availability of the tokenized fund by launching it on the BNB Chain, expanding its use within decentralized finance (DeFi) ecosystems. This move enhances the interoperability of BUIDL, allowing investors to integrate the asset into various DeFi applications.

Tokenized real-world assets (RWAs), such as funds, bonds, and credit instruments represented on blockchains, are increasingly becoming a part of the broader crypto economy. Tokenized U.S. Treasuries offer investors a way to earn yield on idle cash through blockchain platforms and are commonly utilized as reserve assets in DeFi protocols or as collateral in trading and asset management.

Robbie Mitchnick, global head of digital assets at BlackRock, noted that enabling BUIDL as collateral across major digital markets bridges traditional finance with on-chain financial infrastructure.

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BUIDL distributes yield to token holders based on its underlying U.S. Treasury investments. Since its debut in March 2024, it has amassed approximately $2.5 billion in assets, according to data from RWA.xyz.

Further details on the tokenization process and market performance are available via the linked sources.

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