BNB News Today: BlackRock's BUIDL Bridges Traditional Finance and Blockchain Ecosystems

Binance, the world's largest cryptocurrency exchange by trading volume, has announced that BlackRock's tokenized USD Institutional Digital Liquidity Fund (BUIDL) will now serve as off-exchange collateral for institutional trading. This move, facilitated by tokenization platform Securitize, marks a significant step in integrating traditional financial instruments with blockchain-based systems, expanding access to tokenized U.S. Treasuries for institutional and advanced traders.

The BUIDL fund, which manages approximately $2.5 billion in assets, is now available as a collateral option on Binance, allowing users to leverage yield-generating assets while adhering to compliance requirements. Catherine Chen, Head of VIP & Institutional at Binance, emphasized that institutional clients have increasingly requested interest-bearing stable assets to hold as collateral during active trading. By integrating BUIDL with triparty banking partners and crypto-native custody provider Ceffu, Binance aims to enhance capital efficiency for its clients.

In parallel, BUIDL has launched a new share class on the BNB Chain, a blockchain network under Binance's ecosystem. This expansion, supported by Securitize and cross-chain infrastructure provider Wormhole, underscores the growing adoption of real-world assets (RWAs) on public blockchains. Sarah Song, Head of Business Development at BNB Chain, highlighted that the platform's scalability and low-cost infrastructure make it an ideal environment for programmable financial instruments like BUIDL. The tokenized fund, which pays an annualized yield of around 3.7%, offers qualified investors exposure to U.S. dollar yields while enabling new on-chain investment strategies.

BlackRock's Global Head of Digital Assets, Robbie Mitchnick, described the development as a milestone in transforming tokenization into practical market utility. The fund, first issued in March 2024, has already expanded to multiple blockchain networks, including Ethereum, Solana, and Arbitrum. Its integration with Binance and BNB Chain further solidifies its role as a foundational asset in onchain finance, bridging the gap between traditional markets and decentralized ecosystems.

The move reflects broader trends in the RWA space, where tokenized assets like Treasuries, commodities, and private credit are gaining traction as collateral and liquidity tools. BUIDL's adoption by major crypto platforms, including FalconX and now Binance, signals a shift away from stablecoins as the primary collateral in derivatives trading. JPMorgan estimates the total value of tokenized RWAs at around $36 billion, with BUIDL representing a significant portion of this market.

As Binance continues to strengthen ties with traditional finance, recently listing BNB on platforms like Coinbase and Kraken, the collaboration with BlackRock highlights the convergence of institutional-grade assets and blockchain innovation. For institutional traders, the ability to use BUIDL as collateral without sacrificing yield or compliance represents a strategic advantage in capital deployment.