BlackRock’s tokenized US 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 companies said in a Friday press release.
By using BUIDL as collateral off-exchange, traders can collateralize the token with a custodian partner, rather than directly on the exchange, while still trading on Binance. The move gives institutional traders more flexibility to use return-producing assets while staying within compliance frameworks, the companies said.
“Our institutional clients have been asking for more interest-bearing stable assets that 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$931.31allowing investors to use the assets within the ecosystem’s decentralized finance (DeFi) applications, increasing its interoperability.
These moves come as tokenized real-world assets (RWA), such as funds, bonds and credits, are increasingly becoming part of the crypto economy. Tokenized US Treasuries allow investors to park idle money on blockchains to earn returns. They are increasingly used as a reserve for decentralized finance protocols (DeFi) or as collateral in trading and asset management.
“By enabling BUIDL to operate as collateral within the leading digital market infrastructure, we are helping to bring fundamental elements of traditional finance into the onchain financial arena,” Robbie Mitchnick, BlackRock’s global head of digital assets, said in a statement.
BUIDL, which pays a return to token holders from the underlying US government bonds, is the largest tokenized money market fund on public blockchains. It has amassed $2.5 billion in assets since March 2024, data from RWA.xyz shows.
Read more: Tokenization company Securitize aims for public listing via SPAC deal at a $1.25 billion valuation