BNB News Today: BUIDL Bridges Traditional Finance and Blockchain for Institutional Trading

Binance has announced that it will accept BlackRock's tokenized U.S. Treasury fund, BUIDL, as off-exchange collateral for institutional trading, marking a significant step in the integration of traditional financial assets into blockchain ecosystems. The move, announced in collaboration with BlackRock and Securitize, also sees BUIDL launching a new share class on the BNB Chain, expanding its blockchain footprint to eight networks. This development underscores growing institutional demand for yield-bearing, dollar-pegged assets that can serve as flexible collateral while maintaining compliance with regulatory frameworks according to reports.

BUIDL, which represents over $2.5 billion in invested capital, functions as a stable, interest-bearing digital asset backed by U.S. Treasuries. Its adoption as collateral on Binance allows institutional traders to leverage the token without transferring custody to the exchange, enabling them to maintain exposure to tokenized Treasuries while optimizing capital efficiency according to reports. Catherine Chen, Head of VIP & Institutional at Binance, emphasized that this aligns with institutional clients' requests for "interest-bearing stable assets they can hold as collateral while actively trading on our exchange" according to the company. The integration involves triparty banking agents and crypto-native custody partner Ceffu, further streamlining compliance and operational workflows according to reports.

The expansion to BNB Chain, a blockchain ecosystem known for scalability and low transaction costs, enhances BUIDL's interoperability with decentralized finance (DeFi) applications. Sarah Song, Head of Business Development at BNB Chain, noted that the platform's design "enables entirely new types of investment strategies on-chain" according to the company. BUIDL's availability on BNB Chain follows its existing presence on Ethereum, Solana, and other major networks, reflecting a broader trend of tokenized real-world assets (RWA) gaining traction in both institutional and DeFi contexts according to reports.

BlackRock's global head of digital assets, Robbie Mitchnick, highlighted the milestone as a bridge between traditional finance and onchain ecosystems, stating that BUIDL's role as collateral "brings foundational elements of traditional finance into the onchain arena" according to the company. The fund, launched in March 2024, offers daily dividend payouts and 24/7 peer-to-peer transfers, catering to qualified investors seeking liquidity and yield according to the company. With an annualized yield of approximately 3.7%, BUIDL competes with stablecoins while providing the added benefit of U.S. Treasury-backed security according to CoinCodex.

The partnership also signals a strategic alignment between Binance and BlackRock, two industry giants navigating the evolving regulatory landscape. Carlos Domingo, CEO of Securitize, noted that the move "unlocks new forms of utility that were previously out of reach," positioning tokenized RWAs as programmable financial instruments according to reports. Meanwhile, BNB Chain's growing adoption-bolstered by platforms like Aster and integrations with Binance Wallet-positions it as a key hub for RWA innovation according to CoinCodex.

As tokenized Treasuries and other RWAs increasingly serve as collateral in trading and DeFi protocols, the collaboration between Binance, BlackRock, and BNB Chain highlights the maturation of blockchain-based financial infrastructure. With institutions seeking capital-efficient solutions and regulators scrutinizing digital asset custody, BUIDL's expansion reflects a broader shift toward hybrid models that blend traditional asset security with blockchain agility according to Blockchain Magazine.