BNB News Today: Binance and BlackRock Bridge Traditional Finance with Blockchain via BUIDL Collateral

Binance, the world's largest cryptocurrency exchange by trading volume, has integrated BlackRock's tokenized USD Institutional Digital Liquidity Fund (BUIDL) as off-exchange collateral for institutional traders, marking a significant step in bridging traditional finance and blockchain infrastructure. The move, announced in partnership with Securitize, enables clients to use BUIDL-a fund backed by U.S. Treasuries-as a yield-bearing asset to secure trading positions without holding it directly on the exchange.

The integration expands BUIDL's utility beyond its existing presence on Ethereum and other major blockchains, with a new share class launching on BNB Chain. This expansion aligns with Binance's strategy to enhance institutional-grade financial tools, allowing traders to earn yields on BUIDL while leveraging its value for trading activities. "Our institutional clients have asked for more interest-bearing stable assets they can hold as collateral while actively trading on our exchange," said Catherine Chen, Binance's Head of VIP & Institutional according to reports.

BUIDL, which debuted in March 2024, has grown to a market capitalization of $2.5 billion, making it the largest tokenized real-world asset (RWA) in the market. By accepting BUIDL as collateral, Binance joins a growing list of platforms- including Deribit, Crypto.com, and Bybit -adopting tokenized Treasurys to offer low-volatility, yield-generating alternatives to cash or stablecoins. The fund's integration with Binance's triparty banking partners and crypto-native custody service, Ceffu, further underscores the convergence of traditional and digital finance.

The collaboration also highlights BNB Chain's rising prominence in the RWA space. "BNB Chain is designed for scalable, low-cost, and secure financial applications," said Sarah Wong, Head of Business Development at BNB Chain, noting the platform's appeal for institutional use cases. BUIDL's availability on BNB Chain follows major integrations with platforms like Aster and Binance Alpha, reinforcing the chain's role as a hub for tokenized assets.

For BlackRock, the move represents a strategic expansion of its digital asset offerings. According to analysts, "By enabling BUIDL to operate as collateral across leading digital market infrastructure, we're helping bring foundational elements of traditional finance into the onchain finance arena," said Robbie Mitchnick, Global Head of Digital Assets at BlackRock. The fund's tokenization by Securitize, a leader in RWA platforms with over $4 billion in assets under management, ensures compliance with U.S. regulatory frameworks while unlocking new liquidity channels.

The integration could unlock over $500 million in tokenized liquidity for Binance users, according to analysts. This follows a broader trend of institutional adoption of tokenized assets, with U.S. Treasurys-based RWAs now valued at $8.57 billion, led by BUIDL's $2.52 billion, Circle's USYC ($1.06 billion), and Franklin Templeton's BENJI ($850 million). As traditional finance entities increasingly embrace blockchain infrastructure, the collaboration between Binance, BlackRock, and Securitize signals a maturing market for tokenized assets.

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