Asset management titan BlackRock is reportedly in talks with numerous crypto exchange platforms about using its proprietary token BUIDL as collateral for derivatives contracts.
According to a new one report By Bloomberg, anonymous people familiar with the matter say the world’s largest asset manager is exploring the idea of using BUIDL – the crypto asset associated with the firm’s tokenized mutual fund – as collateral for trading derivatives contracts.
BUIDL, which launched in March this year and stands for BlackRock USD Institutional Digital Liquidity Fund, is a tokenized money market fund designed to provide a stable value of $1 per token, built on the Ethereum (ETH) blockchain that offers blue-chip traders the opportunity to earn returns.
Bloomberg says the crypto exchanges BlackRock is in talks with include Binance, the world’s largest crypto exchange by volume, as well as OKX and Deribit.
It was previously reported that the fund invests in cash, US government bonds and repurchase agreements and sends dividends directly to investors’ wallets as new tokens every month.
If declared by Robert Mitchnick, BlackRock’s head of digital assets, in a press release issued by Securitize, BlackRock’s brokerage partner,
“[BUIDL] is the latest development of our digital asset strategy. We are focused on developing digital asset solutions that help solve real-world problems for our customers.”
In April, stablecoin issuer Circle launched a new smart contract feature that allows BUIDL holders to convert their tokens into USDC. At the time, Circle CEO Jeremy Allaire said the new functionality would allow “investors to quickly exit tokenized assets, reducing costs and removing friction.”
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