BUIDL enables high-yield collateralization backed by U.S. Treasuries for advanced trading strategies.
Securitize has announced that BlackRock’s BUIDL token can now be used as collateral for trades on the Crypto.com and Deribit platforms.
The token represents BlackRock’s approximately $29 billion money market fund, and is currently one of the largest tokenized Treasuries in circulation. For institutional traders, this isn’t just good news — it’s a major shift in how they manage their capital.
The BUIDL token offers a yield of around 4% to 4.5% per annum and is backed by assets like U.S. Treasury securities. While traders typically use stablecoins or crypto assets as collateral for margin, now they have a more stable and productive alternative.
It’s like having idle cash that can still generate income, but can also be used to open trading positions — without having to sell it first. And who can use it? Institutional clients and high-roller traders.
This move shows that the crypto industry is starting to take real-world assets seriously. It’s not just a theory or a whitepaper concept.
On the other hand, we previously highlighted the role of Ethena Labs, which in March minted $225 million worth of BUIDL tokens, bringing their total holdings to $1.29 billion. This means that more than 90% of the support for USDe — their stablecoin — now comes from BUIDL. If that’s not proof of trust, then what is?
Furthermore, BlackRock itself is indeed aggressively entering the crypto world. CNF reported that their Bitcoin ETF (IBIT) has surpassed $70 billion in AUM in just 341 days. Even faster than the gold ETF which took five times as long to reach that point. IBIT also recorded net inflows of $48.7 billion, making it the leader among spot Bitcoin ETFs released in early 2024.
However, it’s not just about the numbers. Last May, as we previously reported, BlackRock also sat down with SEC officials to discuss crypto exchange-traded products (ETPs). There, they not only discussed Bitcoin and Ethereum, but also mentioned their interest in Cardano technology. A sign that the investment giant has a broader roadmap than it seems on the surface.
From a market perspective, Deribit and Crypto.com’s decision to accept BUIDL could be the beginning of a major change. Moreover, Deribit is in the process of being acquired by Coinbase. So you can imagine, it is not impossible that Coinbase will also open access to BUIDL tokens in the near future.
For now, only high-level traders can take advantage of it. But if this trend continues, it is not surprising that in the future retail users will also have similar access.
Like someone who has savings in mutual funds, but can immediately use it to make transactions on the exchange — without having to withdraw funds first. It may sound far-fetched, but with this rapid movement, it is not impossible.
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