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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 press release on Friday.
Using BUIDL as off-exchange collateral means that traders can post the token with a custodian partner, rather than directly on the exchange, as collateral while also trading on Binance. The move gives institutional traders more flexibility to use performance-generating assets while staying within compliance frameworks, the firms said.
“Our institutional clients have been asking for more stable, interest-bearing assets that they can hold as collateral while actively trading on our exchange,” said Catherine Chen, head of VIP & Institutional at Binance, in the statement.
Securitize is also expanding the tokenized fund to the BNB Chain which allows investors to use the asset in decentralized financial applications (DeFi) of the ecosystem, increasing its interoperability.
The moves come as real-world tokenized assets (RWAs) such as funds, bonds and credit are increasingly becoming part of the crypto economy. Tokenized US Treasuries allow investors to park idle cash in blockchains to earn a return. They are increasingly used as a reserve asset for decentralized finance (DeFi) protocols or collateral in trade and asset management.
“By enabling BUIDL to function as collateral in the leading digital market infrastructure, we are helping to bring the fundamentals of traditional finance into the onchain financial arena,” said Robbie Mitchnick, BlackRock’s global head of digital assets, in a statement.
BUIDL, which pays a return to token holders from underlying US Treasury funds, is the largest tokenized money market fund on public blockchains. It has raised $2.5 billion in assets since March 2024, RWA.xyz data shows.
Read more: Tokenization Firm Securitize Aims to List Public Via SPAC Deal at $1.25B Valuation
