BlackRock’s Tokenized U.S. Treasury Fund (BUIDL) issued by Securitization Corporation will now be accepted as collateral for institutional trades on Binance, the world’s largest crypto exchange by trading volume, the companies announced in a press release on Friday.
Using BUIDL as off-exchange collateral means that traders can continue trading on Binance while posting their tokens as collateral to a custodial partner rather than directly to the exchange. The companies said the move will give institutional investors more flexibility in accessing yield-producing assets while adhering to compliance frameworks.
“Our institutional clients are looking for more interest-bearing stable assets to hold as collateral when actively trading on our exchanges,” Katherine Chen, Head of VIP & Institutions at Binance, said in a statement.
Securitize is expanding its tokenized funds to BNB Chain BNB$931.31allowing investors to use their assets within the ecosystem’s decentralized finance (DeFi) applications, increasing interoperability.
The move comes as tokenized real-world assets (RWA) such as funds, bonds, and credits are becoming part of the crypto economy. Tokenized U.S. Treasuries allow investors to store idle cash on the blockchain and earn yield. They are increasingly used as reserve assets in decentralized finance (DeFi) protocols or as collateral in trading and asset management.
“By enabling BUIDL to serve as collateral across major digital market infrastructures, we are helping to bring fundamental elements of traditional finance into the on-chain finance space,” Robbie Mitchnick, BlackRock’s global head of digital assets, said in a statement.
BUIDL is the largest tokenized money market fund on a public blockchain that pays yield to token holders from underlying US Treasury holdings. The company has amassed $2.5 billion in assets since March 2024, according to data from RWA.xyz.
Read more: Tokenization company Securitize aims to go public through SPAC deal with $1.25 billion valuation
