BNB News Today: BlackRock Bridges Traditional and Digital Finance with BUIDL Expansion

BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), tokenized by Securitize, has expanded its footprint by launching a new share class on the BNB Chain and being accepted as off-exchange collateral on Binance, the world's largest cryptocurrency exchange by trading volume. This move underscores growing institutional adoption of tokenized real-world assets (RWA) and marks a significant step in bridging traditional finance with onchain infrastructure.

The integration allows institutional and advanced traders to use BUIDL as collateral while maintaining exposure to tokenized U.S. Treasuries. By holding BUIDL with a custody partner like Binance's crypto-native service Ceffu, traders can access yield-generating assets without directly depositing them on the exchange. This aligns with institutional demand for "interest-bearing stable assets" that comply with regulatory frameworks, according to Catherine Chen, Binance's Head of VIP & Institutional. "Our clients want flexibility to scale allocations while meeting compliance requirements," she stated.

BUIDL's expansion to BNB Chain, one of the leading blockchain ecosystems, enhances its interoperability with decentralized finance (DeFi) applications. The fund, which debuted in March 2024, now operates on eight blockchain networks, including Ethereum, Solana, and Avalanche. With $2.5 billion in assets under management, BUIDL offers an annualized yield of approximately 3.7% and serves as a benchmark for tokenized Treasuries in the RWA space.

The collaboration between BlackRock, Securitize, and Binance highlights the convergence of traditional and digital finance. Carlos Domingo, CEO of Securitize, emphasized that the move "unlocks new utility for regulated real-world assets onchain," enabling institutional players to deploy capital more efficiently. Meanwhile, BNB Chain's Head of Business Development, Sarah Song, noted that BUIDL's programmable nature allows for "entirely new investment strategies" within the blockchain ecosystem.

Robbie Mitchnick, BlackRock's Global Head of Digital Assets, framed the development as a milestone in tokenization's transition from concept to practical utility. "By integrating BUIDL into leading digital infrastructure, we're bringing foundational elements of traditional finance into onchain markets," he said. This aligns with broader trends as tokenized assets increasingly serve as collateral and reserve assets in DeFi protocols.

The move also reflects Binance's strategic push to attract institutional clients. The exchange has partnered with triparty banking agents and custody services to streamline compliance, a critical factor for institutional adoption. Despite regulatory scrutiny faced by Ceffu in 2023, Binance continues to solidify its position as a bridge between traditional finance and crypto, with major institutions like Robinhood and Coinbase recently listing BNB, the native token of BNB Chain.

As tokenized RWAs gain traction, BUIDL's role as a capital-efficient, yield-bearing asset is expected to grow. With its expansion to BNB Chain and adoption as collateral, the fund exemplifies how blockchain technology is reshaping institutional finance.