BlackRocks BUIDL Token Accepted as Collateral on Crypto.com and Deribit

The BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the largest tokenized U.S. Treasury fund, has been accepted as collateral on two prominent crypto trading platforms, Crypto.com and Deribit. This development allows institutional traders to use BUIDL tokens as margin for leveraged trades on these exchanges while also earning yield on the underlying token.

The tokenized Treasury market has experienced significant growth, expanding by approximately 400% over the past year to reach a market capitalization of over $7 billion. This growth highlights the increasing popularity of tokenized real-world assets, which enable investors to earn yields on their idle cash within the blockchain environment. These tokens are also being increasingly utilized as collateral for trading purposes.

With $2.9 billion in assets, BUIDL is the largest fund in the tokenized Treasury market. It is backed by a short-term yield-bearing portfolio of cash and U.S. Treasuries. The acceptance of BUIDL as collateral on Crypto.com and Deribit underscores the evolving role of tokenized Treasuries in the crypto market. These tokens are not only providing yield but are also becoming integral to the market's infrastructure, enhancing capital efficiency and risk management.

According to Securitize CEO Carlos Domingo, tokenized Treasuries are being actively employed to improve capital efficiency and risk management across some of the industry’s most sophisticated trading venues. He noted that the BUIDL fund is transitioning from a yield-bearing token into a core component of crypto market infrastructure. This shift reflects the growing integration of traditional financial instruments with the crypto ecosystem, offering new opportunities for institutional traders to optimize their strategies.