BlackRock Securitize BUIDL Fund Accepted as Collateral on Major Crypto Exchanges

BlackRock, in collaboration with Securitize, has introduced the BUIDL fund, which is now being utilized as collateral on prominent crypto exchanges such as Crypto.com and Deribit. This move represents a significant advancement in the cryptocurrency trading landscape, as it integrates real-world assets into the digital finance ecosystem, thereby enhancing capital efficiency across various markets.

The BUIDL fund, which is backed by U.S. Treasury bills and offers an annual yield of 4.5%, is the first tokenized U.S. Treasury fund to be accepted as collateral on these exchanges. This development is expected to influence trading strategies by shifting focus from volatile assets to tokenized securities, potentially realigning asset allocations and valuation approaches. The involvement of institutional partners such as BNY Mellon further underscores the fund's credibility and regulatory compliance, maintaining investor confidence.

Carlos Domingo, the CEO of Securitize, highlighted the transformative potential of the BUIDL fund, stating that it is evolving from a yield-bearing token into a core component of crypto market infrastructure. He emphasized that tokenized Treasuries are being actively used to improve capital efficiency and risk management across some of the industry's most sophisticated trading venues, while still offering yield.

The launch of the BUIDL fund and its acceptance as collateral on major exchanges signify a broader shift towards the integration of traditional finance with blockchain technology. This development not only provides traders with more flexibility in managing their capital but also signals a growing acceptance of tokenized assets in the financial industry. As tokenized securities gain traction, they are likely to play an increasingly important role in the crypto ecosystem, offering new opportunities for investment and capital management.

Experts have discussed how tokenization may transform capital markets, promising improved liquidity and trading efficiency. Observers note the potential for increased adoption, aligning traditional and digital finance realms. The regulatory adherence of the BUIDL fund signals robust compliance frameworks, further enhancing investor confidence in tokenized securities.

The BUIDL fund, which was introduced in March 2024, has rapidly expanded its reach across multiple blockchains, including layer-2 scaling solutions such as Arbitrum, Optimism, and Polygon. With $2.9 billion in assets under management, the fund has become a significant player in the tokenized securities market. The acceptance of BUIDL as collateral on leading exchanges such as Crypto.com and Deribit marks a significant milestone in the integration of traditional financial instruments with the crypto ecosystem.

Michael Sonnenshein, the chief operating officer at Securitize, highlighted the importance of this development, stating that tokenized securities are emerging as a viable alternative to stablecoins. He noted that these securities are becoming programmable productive capital, rather than just passive investment instruments used for yield or capital preservation. This shift is expected to influence trading strategies by providing traders with more flexibility in managing their capital and enhancing capital efficiency across various markets.

Crypto.com will make BUIDL available for institutional clients in select jurisdictions across its full suite of services. Deribit, the largest crypto options exchange by volume, will also offer BUIDL on its spot exchange, traditionally accepting collateral in the form of Bitcoin. Additionally, there are indications that BUIDL may soon be available on Coinbase, as the firm is in the process of acquiring Deribit. This further underscores the growing acceptance of tokenized assets in the financial industry and the potential for increased adoption in the future.